In that case, you must report any dividends and capital gains you earn during tax season. Remember that any income you generate from lottery winnings is taxable.įor example, you invest some of your winnings in the stock market. This will be the case unless, due to the circumstances applying to the lottery scheme, the prize can be considered to be income from employment, business or property, or a prize for achievement referred to in paragraph 56(1)(n). The amount or value of a prize received by a taxpayer from a lottery scheme is not taxable as either a capital gain or income.
Under Canada’s Income Tax Act, money earned from a lottery is considered a financial windfall or, to put it another way, an unexpected surplus of cash.Īnd since financial windfalls aren’t subject to income tax, you’re not required to report lottery winnings on your tax return. If you win money through a lottery, like Lotto 6/49 or Lotto Max, it’s all yours to keep, whether it’s $100 or $10 million. Lottery winnings are not taxable in Canada. We may be compensated if you use, sign-up or apply for services through our links.
