In 2023, I worked full time but I also picked up a contract as a consultant for a non-profit. That work took place from October 2023 going into March 2024. I received 50% of the contracted amount in payment 2023. The organization also issued me a T4A which has the 50% that I was paid in 2023.
My understanding for self-employment earnings was that I needed to claim the income in the year the work started, so I would pay taxes on the full 100% of the money, despite only being paid 50% of it in 2023. Essentially, claiming 50% as work completed in the year, and 50% as work in progress (WIP).
But since I'm likely to be issued another T4A in 2024 for the remaining 50%, wouldn't that cause me to end up double paying on taxes for this project? Is there a way to disregard the T4A that would be issued next year, knowing that I already claimed it as WIP?
I would prefer to pay the full amount of taxes in 2023. The amount of self-employment earnings I will have received in 2023 is less than the $30000 required by CRA to have a GST number. So I didn't have a GST number at the time the contract was signed and the work started. However, in 2024, I did register for a GST number in order to bid on a larger contract. It is not in my contract with this organization to charge them GST, so if I don't claim the full amount in 2023, will I be on the hook for the GST for the 50% portion to be paid out in 2024 when the contract closes out?
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