This method mainly benefits service-based freelancers since it’ll simplify things when you’re doing your taxes. Once you’ve registered for your HST number, you can choose the quick method when it comes to reporting the taxes you’ve collected. There is no provincial sales tax (PST) in some provinces, which throws a few people off. For example, although I’m based in Toronto and I do work for a company based in Quebec, I charge them GST of 5%. What you charge depends on what province the business you’re charging has its tax base. Once you have your harmonized sales tax number, you’ll need to start charging sales tax. It doesn’t matter if you’re making more than that from your regular job, you only need to get an GST/HST number if you make $30,000+ in freelance income. To be clear, the $30,000 threshold only applies to freelance income. In other words, you need to stay on top of your tax obligations. It’s totally on you to keep track of your income and to register when you need to – if you don’t, you’ll be penalized later. As soon as you pass that threshold, you must register for a GST or HST number. GST/HST Registrationįreelance taxes remain relatively simple when your income is less than $30,000 since you’re still considered a small supplier. Here are some ways you can save money on your taxes. ![]() This ensures you get every business deduction you’re entitled to which in turn means more money in your pocket. TurboTax solutions for Self-Employed walks you through the tax filing process while prompting you with self-employment questions. If these deductions are making your head spin, don’t worry, there’s a simple solution to make your life easier. So if you use your home internet only 20% of the time for freelance work related assignments, you can only claim 20% of your bills. Note that personal use of any expenses cannot be claimed. For casual freelancers, the following are things you’ll want to claim as expenses. A full list of expenses you can claim is listed on the CRA website but generally speaking, you can deduct any reasonable expenses that are related to the cost of your business. This form is a statement of your business activities which covers your income and expenses. You’ll also need to fill out the T2125 form. Look for lines 135-143 on your tax return for self-employment income or lines 162-170 for gross self-employment income. You’re taxed only on your net income which is your total income minus all your expenses.
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