If you’re one of the millions of Canadians with a business or professional activities. Incorporated businesses will complete a T2 corporation income tax return and a Schedule 125 (income statement information).
The CRA might know more about your side income than you think. Gig platforms have to collect and report information about certain users under CRA’s digital platform reporting rules. If you use these platforms for contract jobs, hiding your income isn’t a good move because they’re getting data directly from companies. Failing to report all of your income comes with penalties in some situations — and if you repeatedly fail to report $500 or more, the CRA may apply a federal and provincial/territorial penalty.
“The last thing you want is to receive any sort of notification that you didn’t include any particular income in your tax return,” says Stefanie Ricchio, a chartered professional accountant and tax expert with Intuit TurboTax Canada.
2. Act like a small business owner
One of the most important things for side hustlers to remember isn’t about tax forms or rules. It’s about adopting the habits of a business owner.
“You’re now, to a certain extent, taking on the role that your employer would take on for you,” says Martha Adams, a certified Here Hustle Reduce Side Ways
