Casual income, such as earnings from occasional babysitting or odd jobs, should be reported on your tax return. Here's how to do it in Wealthsimple Tax:
Reporting occasional earnings:
- Add the Tips, Royalties, Occasional Earnings, etc. section to your profile
- Report your casual income in the Occasional earnings row
Important considerations:
- Business income: If you earn a substantial amount from regular activities, you may be operating a business. In this case:
- Employment income: If your work is more like employment (regular hours, under supervision), the payer should:
- Deduct and remit payroll taxes
- Provide you with a T4 slip
Remember:
- All income, even from casual work, must be reported on your tax return
- Keep records of your earnings and related expenses
- The CRA may ask for documentation to support your reported income
If you're unsure whether your income qualifies as casual earnings, business income, or employment income, consider consulting with a tax expert for guidance.
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