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New Member
posted Oct 30, 2019 5:29:20 PM

Should employment income (box 14) include gratuities or is that entered separately?

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1 Replies
New Member
Oct 30, 2019 5:29:22 PM

Yes, you need to report your tips: https://turbotax.intuit.ca/tips/can-gratuities-be-taxed-in-canada-150

You can report tips and gratuities along with other income that does not appear on T4 slips on line 104 of your tax return. The CRA expects this amount to be a real number, reflecting tips earned in a tax year, rather than an estimate or a percentage of earnings reported on a T4 slip.

Keeping a simple tip log supports your line 104 claim. Tracking the days you work and the direct tips earned is sufficient record to document your claim.

Direct tips represent untaxed income, so there will be a tax liability on the line 104 amount. If you work part-time in the hospitality industry while attending school, for example, your tax credits and deductions may offset tax owed on gratuities.

Depending on your situation, consider saving about 25 percent of your gratuity income throughout the year to cover additional taxes.