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

MissKriss65 — Wed, 09 Apr 2025 18:37:50 GMT

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?

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

TurboTax_Susan — Fri, 11 Apr 2025 18:22:25 GMT

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

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

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