Dear Peak Money,
I started a YouTube channel during the pandemic—primarily out of boredom. Surprisingly, I amassed a small but loyal audience and made a few thousand dollars from ads. Do I need to claim this as income? If so, how? I’ve only ever had jobs where I got T-4s.
Sincerely,
Young and on YouTube
Dear Young and on Youtube,
All income earned worldwide has to be claimed on your Canadian tax return. If you do not receive a T4 for income earned, you must include it on line 10400 for other income. You must report the total amount, and you will be taxed on this amount.
If this is a side hustle and you have expenses to claim against this income (website, advertising, etc.), consider putting this as income on the self-employment form (T2125).
- This income will still be taxed personally, but you can claim some of your expenses for running your Youtube channel against the income, reducing the amount you will be taxed on.
- Go to the CRA website for a complete list of all the items you can claim against this income on T2125.
Most tax programs have the option to either enter the income on line 10400 or submit the self-employment form with your tax return when you file it.
Janine Rogan is the Founder and CEO of The Wealth Building Academy, an award-winning Chartered Professional Accountant (CPA), TEDx speaker, and the author of The Pink Tax. She also publishes weekly videos on Youtube and shares financial tips and tricks on Instagram.