Canadian Taxes for students

[TorontoCFE]

At this point, I'm not aware of any cases before the courts.

The only cases I'm aware of are a couple of people going through assessments from the CRA.

[ianlippert]

ok so it looks like that if you are making more money than expenses and you treat poker like a business then you have to pay taxes on it. Is anyone familiar with the percentage that is paid by each tax bracket? Could you only withdrawel a minimum amount per month and say that is your income while still building your roll?

For example there is a certain point where you are paying something rediculous like 35-50%. If I only took out $4000/month could I claim that I make 50K/yr get taxed on that but say leave an additional $2000/month on the poker site? So you could skip a tax bracket when the tax would hurt your roll building, but say if you got up really high you could start taking out more money.

[DavidNB]

Taxes are payable on amounts won not on amounts withdrawn. If you win 75K at Partypoker but only withdraw 50K, you would owe taxes on the 75K not the 50K. There maybe ways around it, but not legally.
Keep in mind if you are declaring the income, there may be a number of expenses you can deduct. Computer leasing fees, books, internet monthly charges and so on. You should really see a tax accountant to get the whole story./

[Senk]

Moving up a tax bracket doesn't mean that all you income would become taxable at the higher rate. Just the portion in the higher bracket would get taxed at the higher rate.

For example the tax brackets in Ontario are approximately:

First $35,000 - 21%
$35k to $61k - 31%
$61k to 69.5k - 33%
$69.5k to 72k - 35.4%
$72k to 118k - 43.4%


Let's say that you made $40,000.

The tax payable by you would be

($35,000 x 21%) + ($5,000 x 31%) =
$7,350 + $1,550 = $8,900

For the exact marginal tax rates in your province,
check this website: http://www.taxtips.ca/tax_rates.htm

[Senk]

[ QUOTE ]

The only cases I'm aware of are a couple of people going through assessments from the CRA.

[/ QUOTE ]

How did CRA get the idea that there was poker income that they should be targeting?

Are the people involed full-time pros or do they have real-world jobs?