Here's Everything You Need To Know At Tax Time If You Don't Work A Traditional 9 To 5
If you work freelance, gig-based or have a side-hustle, you'll want to know this stuff!💰
An Uber Eats Delivery Driver. Right: A Canadian Tax Form.
Tax time in Canada is here, folks! Working on your taxes as a freelancer or gig-worker is something that a lot of Canadians may need to deal with.
So, whether you're gig-based, freelancing or you just have a side hustle, there are lots of options in the CRA that can help you out and save you so money on your taxes.
Narcity caught up with Gerry Vittoratos, a tax expert from UFile, about how to navigate the world of taxes if your work life isn't the ordinary nine-to-five.
For folks who work on a more freelance basis, the Canadian government has a program called the Accelerated Investment Incentive Program.
This allows freelancers to "to triple the depreciation rate that they can claim for these depreciable assets in the year of purchase," according to Vittoratos.
Did you earn income from short-term contracts or from freelance work using online platforms or apps?\n \nHere\u2019s how working in the #GigEconomy may affect your taxes https://ow.ly/vGAx50IqC9j\u00a0 #CdnTaxpic.twitter.com/EdN8qJuSi1— Canada Revenue Agency (@Canada Revenue Agency) 1648063803
What this means is that freelancers can claim the rate of depreciation (i.e lowering of value) of certain assets they have triple fold.
So, for example, when buying a new computer for your freelance gig, you are able to claim that its value falls three times faster than it actually does in the same year you've purchased it.
On top of that, as of this year, freelancers can claim the whole cost of certain qualifying assets used in their job as well, rather than just a percentage.
And, if you're working on a side hustle or freelance basis, you may be working from home as well. From this, comes opportunities to claim expenses.
"The types of home-based expenses they can deduct include part of maintenance costs such as heating, home insurance, electricity, and cleaning materials," Vittoratos explained. "They can also deduct part of your property taxes, mortgage interest, and depreciation, or rent if you rent your home."
However, the tax expert also points out that "these expenses are prorated based on the area that the workspace represents vis-à-vis the total area of your home." So, don't go deducting your entire home's electricity bill if you're only using a desk.
Working from home and looking to claim your home office expenses? \n\nUse our online calculator to help calculate your deductions! https://ow.ly/k2e550Ei9r2\u00a0 #CdnTax #WorkFromHomepic.twitter.com/AP7qtX7LPv— Canada Revenue Agency (@Canada Revenue Agency) 1617981310
His final piece of advice for people working freelance or on a side hustle? Make sure you keep track of your documents and receipts.
"When it comes to taxes in general," continued Vittoratos, "one of the main errors made by taxpayers is missing out on deductions/credits because the receipts are missing."
Make sure you have everything stored away for tax time because those bills can really come in handy and save you some money.
And for those who are digitally-confident, there are plenty of apps that can help you organize your documents and archive them electronically, Vittoratos said.
But these aren't the only ways to be savvy this tax season. There are lots of credits and benefits out there for homeowners, students, and just about anybody out there that you might be eligible for.
Oh and, just a reminder: this year's tax deadline is April 30.
This article's cover image was used for illustrative purposes only.