Hi all,
I am currently a broke university student IN CANADA who has a part time job (approx. 13k a year?)...
To help pay off my debt, I decided to start an application to Rev.com, a freelance transcription job that is located in San Francisco that would pay my Paypal every Monday (I am not sure whether or not is is CAD OR USD). HOWEVER, I WOULD BE WORKING ON MY COMPUTER IN CANADA.
How would I report this on my income? I don't think the company mails out any T4 slips. How much in taxes would I pay? I have no idea where to start!!
If someone could walk me through this, I would really appreciate it.
First off, you will need to figure out if the amounts you have been paid in CAD or USD, because if you were paid in USD, you’ll need to convert the amounts to USD.
If the amount you made less than $3,500 (CAD), then you can just report it as other income. This FAQ tells you how: https://turbotax.community.intuit.ca/community/other-income/help/how-do-i-enter-other-employment-inc...
If the amount you made was above $3,500 (CAD), you’ll have to contribute to the Canada Pension Plan (CPP). This means reporting the income as Self-Employment Income. You’ll need to fill out the T2125 Statement of Business or Professional Activities form. You won’t need a business number or a GST/HST registration (unless you’ve made over $30,000) - you just need to fill out the bare minimum. However, you will also be able to deduct expenses this way, reducing the amount that is taxable. This TurboTax Blog post goes through the basics of the T2125: https://turbotax.intuit.ca/tips/small-business-tax-tips-filing-a-t2125-4119
And here’s a handy checklist: https://turbotax.intuit.ca/tips/self-employed-checklist-download-9353
You can use TurboTax Online Free to do a self-employed return, though our self-employment products provide extra guidance to help you recognize eligible expenses, credits and deductions you can claim.
First off, you will need to figure out if the amounts you have been paid in CAD or USD, because if you were paid in USD, you’ll need to convert the amounts to USD.
If the amount you made less than $3,500 (CAD), then you can just report it as other income. This FAQ tells you how: https://turbotax.community.intuit.ca/community/other-income/help/how-do-i-enter-other-employment-inc...
If the amount you made was above $3,500 (CAD), you’ll have to contribute to the Canada Pension Plan (CPP). This means reporting the income as Self-Employment Income. You’ll need to fill out the T2125 Statement of Business or Professional Activities form. You won’t need a business number or a GST/HST registration (unless you’ve made over $30,000) - you just need to fill out the bare minimum. However, you will also be able to deduct expenses this way, reducing the amount that is taxable. This TurboTax Blog post goes through the basics of the T2125: https://turbotax.intuit.ca/tips/small-business-tax-tips-filing-a-t2125-4119
And here’s a handy checklist: https://turbotax.intuit.ca/tips/self-employed-checklist-download-9353
You can use TurboTax Online Free to do a self-employed return, though our self-employment products provide extra guidance to help you recognize eligible expenses, credits and deductions you can claim.
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