Treatment of Income

[KL70]

Hi, I'm a renter that babysat for my landlord every weekend for a year. Because this was a regular, weekly thing with a set amount of pay, we figured that it would be easier to just take the payment for what they owed me for babysitting each month off what I owed them for rent the next before paying the difference. Would this be considered a barter and how would I report this income? Thanks for the help! 

[SandraWWoodbridge]

You would need to report the full amount of babysitting income, separately from the rental expense.

Please check this discussion regarding “babysitting income”.

If you made less than $3500 in babysitting income, you can report it on line 10400 as casual income, and there is no need to fill the business sheet:

• Search for "income not reported on a T4 slip"
• select "Received tips, gratuities, occasional earnings, or other employment income"
• report it as "occasional earning"

According to CRA, once your casual income is more than $3500, you will need to contribute to the CPP (Canada Pension Plan). In this case, you will have to report this income as business income. From the left-side menu, search for self-employment under income. Or you can search for self-employed using the magnifying glass on the top bar. Use "other type of business" to report babysitting income. This will open the T2125 business sheet.

Next, you can claim your rent expense if you live in Ontario, Manitoba, or Quebec.

Please check Can I claim a tax deduction for my rent?

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