Self-employment Tax

When tax season arrives, reporting self-employment income is substantially more complex than employment income. In addition to claiming tax credits, you also need to determine your business revenues and expenses and figure out HST/GST and PST obligations.

Tax season for freelancers can be a stressful time.

For self-employed business owners including:

Truck and taxi drivers
Real estate agents
Construction workers

Key Takeaways

Income you earn as a freelancer is taxable, and it’s vital to track this income as well as expenses
Being self-employed allows you to claim business deductions for things like your home office, business travel, meals, and office supplies and equipment
You need to register for a GST/HST number if you earn over $30,000 per year from self-employed business activities

What to claim as business expenses

Reporting self-employment income is a little more complex than employment income, but don’t worry, we got you!!

Generally, you can get a tax deduction for most things you bought for work. The most common are:

Gas receipts.
Marketing costs like your website, print and digital ads, or SEO maintenance
Equipment like a laptop, camera, or microphone
Software subscriptions
Your cellphone, mobile plan, and internet bill
Travel, meals, and entertainment costs related to your business, such as taking a client out for dinner
Training and professional development
Business insurance, legal fees, and accounting costs.