If you earn self-employment income from a side hustle in Canada, you must generally report all of it to the CRA, regardless of how small the amount is. However, this rule may apply to you: you only need to register for GST/HST if your total revenue exceeds $30,000 in any four consecutive calendar quarters. Until you reach that threshold, you can operate without collecting sales tax, though you still report your net business income on your tax return. The CRA views self-employment income differently than employment income. Unlike employees who have tax withheld at source, self-employed people are responsible for reporting all revenue and claiming eligible expenses. There is no dollar threshold below which you're exempt from reporting. Even side income of $100 from freelance work, online sales, or consulting must be included on your tax return. The bright side: you can deduct legitimate business expenses to reduce your taxable income. While all income must be reported, GST/HST registration works differently. This rule may apply to you: you must register for GST/HST once your revenue exceeds $30,000 over any four consecutive calendar quarters.
Yes, all self-employment income must be reported to the CRA, no matter how small. Even $100 earned from a side gig must appear on your tax return. The CRA has no minimum income threshold for reporting.
You must register for GST/HST once your revenue exceeds $30,000 over any four consecutive calendar quarters. Before that point, you can operate without charging sales tax, though you still report your net income.
You can deduct expenses that are reasonable, necessary, and directly related to earning your self-employment income. Personal expenses and costs unrelated to the business cannot be deducted. Keep receipts to support every deduction.
If your net self-employment income is substantial and you owe more than $3,000 in combined federal and provincial tax for the current and previous two years, this rule may apply to you. The CRA will notify you if installments are required.
Report your net self-employment income on Form T1 General (lines 10400-10599) and file a T1 Business Statement showing your revenue and expenses. Your net income combines with other income sources to determine your total tax owing.