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

  1. Income you earn as a freelancer is taxable, and it’s vital to track this income as well as expenses
  2. Being self-employed allows you to claim business deductions for things like your home office, business travel, meals, and office supplies and equipment
  3. 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.

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