No. Your lottery and gambling winnings don't have to be included as income on your tax return. These types of income don't fall under any of the broad categories of income described in the Income Tax Act.
Additional amounts that you don't need to report include:
- Most gifts and inheritances;
- Most payments of the type commonly referred to as strike pay received from your union (even if you performed picketing duties);
- Most amounts received from a life insurance policy paid out following someone’s death; and
- Any compensation paid to a victim or a criminal act or automobile accident by a province or territory
Note: While the amounts from any of the categories listed above may not be taxed, any income you earn on them (for example, the interest you earn when you invest your lottery winnings) is taxable.
Where can I learn more?
- Income tax folio (CRA website)
- Amounts that are not taxed (CRA website)
