Canada: Can I claim tip money from street performing without consequences?

[MissKriss65]

I’m on disability and other than disability payments I have no other source of income. 

This year I started playing a musical instrument on the streets for tips and made about $3000 CDN over the summer and fall. I also made $600 from several gigs I was hired to play at. 

I entered this information in TurboTax under “Tips, Gratuities, and other employment income” and TurboTax is telling me I will get a $900 refund courtesy of the Canada Workers Benefit. 

I told my family and everyone I asked told me not to report it as the government could conceivably come after me and want that money back with interest because it’s not a proper job and they are worried that I don’t actually qualify for that money.

So I want to ask the tax experts: can I safely report that $3000 tip income and receive the $900 refund without worrying about potential penalties?

[TurboTaxSusan]

You have to report your income because there are penalties for not reporting income, especially when you're talking about thousands of dollars. In your case, since you've made over $3500 in total, you should enter that income as self-employment instead of tips, as you need to pay CPP contributions on employment/self-employment income that's more than $3500. 

As for the CWB, you can review who is eligible for it on this CRA website: Canada Workers Benefit - Who is eligible