This was in Turbo Tax. The underlined portion made me think that reporting this income is optional. "Casual employment is temporary, occasional work that is not regular. Typically, you do not receive a T-slip or receipt for this type of work. Reporting this income gives you more RRSP contribution room and increases your CPP pensionable earnings. It may also increase your GST/HST credit."
CRA requires that you report "all income" you earn. If you earn "casual employment income" you can report it as "Employment Income not reported on a T4", as long as that amount does not exceed $3,500. If you exceed $3,500, you will then need to report this income as "Self Employed" income and possibly pay CPP contributions on it.
Thanks for pointing that out 🙂 The CRA states "With very few exceptions, every person over the age of 18 who works in Canada outside of Quebec and earns more than a minimum amount ($3,500 per year) must contribute to the Canada Pension Plan (CPP)".
For this reason, when you exceed that $3,500 threshold earning "other employment income", they consider this to be Self-Employment Income and in order to make those contributions, you must report the income as such.
- From the above link: You may be able to contribute to the Canada Pension Plan or Quebec Pension Plan for this income. See line 22200.
The following CRA link includes the $3,500 "net income" threshold where CRA considers you to be "Self-Employed":
"If your net self-employment income and pensionable employment income is more than $3,500, you will have to contribute to the Canada Pension Plan (CPP".
Hope this cleared things up for you. Happy Tax Filing
I am a bit unclear about this.
This winter I walked dogs and sold some handmade items that totaled below $3,500 what line would I put this under?
If this is not considered self-employment income because it is under $3,500 what is it considered and where do I report it?
CRA requires that you report "all income" you earn. If you earn "casual employment income" you can report it as "Employment Income not reported on a T4", as long as that amount does not exceed $3,500.
Report on, line number10400 tips, gratuities, or occasional earnings you received that are not included in your T4 slips.