Canadian Taxes for students

ahnuld · #1 02-24-2006, 12:34 PM

Just spoke to a family friend who is also a tax lawyer about the deal with taxes on poker in Canada. Supposedly, if you are registered as a full time student like most of us are, then it is considered the same as a full time job and any money made in gambling or poker would automatically be considered a windfall. Bottom line, dont drop out to go pro, the taxes will kill you!

DavidNB · #2 02-24-2006, 05:21 PM

Its not a windfall, you are getting bad advice. Any big amount won would be taxable.

ahnuld · #3 02-24-2006, 07:48 PM

thats what im saying. As a registered full time student, it is not taxable.

DavidNB · #4 02-24-2006, 08:37 PM

Depends on how much won, not whether you are a student. If students have a part time job, they pay taxes. If students start raking in the cash on internet poker sites and/or vegas games, they pay taxes. It makes no difference in the eyes of the tax dept whether you are a student or have a full time job.,

A windfall falls under lottery winnings, bingo, game show and so on where you get a unexpect win. Poker isn't a windfall.

ahnuld · #5 02-25-2006, 12:20 AM

Part time job is didfferent from gambling. A full time student automatically is disqualified as a proffesional gambler. No taxes and it IS considered a windfall. Dude, shes a partner at a top firm.

SirBobSaget · #6 02-25-2006, 03:08 AM

If that were the case than any potential high earner would enroll themselves in some college (pay the 3,000$/year tuition) and save loads on taxes. The tax free status must be capped at some earnings level.

ahnuld · #7 02-25-2006, 03:27 AM

This is only for canada, 1, and you could only do the above scam for one semester before failing out if you got accepted at all. A full course load is heavy.

DavidNB · #8 02-25-2006, 11:23 AM

She must be mixed up. Fulltime student doesn't mean anythiung. Doesn't matter how you eartn the income, its still taxable. Poker winnings isn't a windfall. Look up the meaning of the word perhaps

DavidNB · #9 02-25-2006, 11:56 AM

[ QUOTE ]
This is only for canada, 1, and you could only do the above scam for one semester before failing out if you got accepted at all. A full course load is heavy.

[/ QUOTE ]

Your friend should brush up on her work. To be a fulltime student under the eyes of the tax people, you need only to have courses that account for 10 hours a week. See the link for more information.
http://www.cra-arc.gc.ca/E/pbg/tf/t2202/t2202-05e.pdf

TorontoCFE · #10 02-25-2006, 05:27 PM

Whether you are a student or have other income means nothing. The only question is whether you are in the business of poker. If so, you pay tax whether you are a 17 yr old high school student or a 50 yr old CEO of a major corporation.

If you are a student earning less than 10k in poker earnings and any other earnings, you should declare it any ways since you won't pay any tax and will at least get RRSP room for the future.