According to CRA, once your casual income is more than $35000, you will need to contribute to the CPP (Canada Pension Plan). In this case, you will have to report this income as business income.
If you made less than $35000 in babysitting then using our TurboTax Online software, you can enter your Babysitting income for 2021 by following the steps below.
- Open your return and then click on Income in the left side menu and then Other Income Sources.
- Next, click on Income not reported on T slip, and the Employment status screen will appear. Here you need to click on Received tips, gratuities, occasional earnings, or other employment income and Continue.
- In a situation with an income of more than $35000 you need to report as a self-employment Income (business Income).
- To do that on your return click on Income in the left side menu and then Self Employment Intro. You need a business number if you incorporate or need a CRA program account (like GST/HST, Payroll deductions, or Import-export). You might need a business number to interact with other federal, provincial, and municipal governments in Canada.
- On the next page you need to fill in all the information about your business and click Continue.
- If you are reporting the income as "other income", then you can't deduct any expenses. However, if you are reporting it as business income, then you can report it as "Office stationery and supplies" in the self-employment expenses section. This is where you will include the food as per this Canada Revenue Agency (CRA) page: Office Stationery and Supplies
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