Side jobs & taxes.

[Siwy]

I have a full time programming job and in addition I do side jobs for other companies on my own time (programming, web design etc.). If I make less than $30K a year from the side jobs, do I need to submit it with my personal income tax? Does the small business $30K threshold rule apply here?

Thanks,

[ipxxx]

I have a full time programming job and in addition I do side jobs for other companies on my own time (programming, web design etc.). If I make less than $30K a year from the side jobs, do I need to submit it with my personal income tax? Does the small business $30K threshold rule apply here?

Thanks,

Small business 30K threshold? That's a new one to me... I do web design/development on the side as well and I make only a few thousand a year..I still claim it on my personal income tax (I do not have a registered business or anything). Maybe I've been doing it wrong?

[SpillOnAisle9]

The $30K limit being thrown around is the exemption for GST....because
you're making less than 30 yo udon't have to collect and remit GST.

You still have to claim the revenue as 'other income' on your T1

[ipxxx]

The $30K limit being thrown around is the exemption for GST....because
you're making less than 30 yo udon't have to collect and remit GST.

You still have to claim the revenue as 'other income' on your T1

Ah yes something like... - http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/rgstrng/mndtry-eng.html
So I'm NOT going crazy! =)

[Siwy]

The $30K limit being thrown around is the exemption for GST....because
you're making less than 30 yo udon't have to collect and remit GST.

You still have to claim the revenue as 'other income' on your T1

That makes sense.

Now I just have to figure out a way to lower these taxes. I guess I have some reading to do :)

Just to be sure I'm on the right track ~ Lets say I'll make $15-20K a year on average, it probably makes sense to register the business, have the clients write the checks to my business instead of me personally and then do the personal taxes and business taxes separately?

Thanks,

[aleks3]

That makes sense.

Now I just have to figure out a way to lower these taxes. I guess I have some reading to do :)

Just to be sure I'm on the right track ~ Lets say I'll make $15-20K a year on average, it probably makes sense to register the business, have the clients write the checks to my business instead of me personally and then do the personal taxes and business taxes separately?

Thanks,

Unless you incorporate, registering your business (and collecting checks in your business's name) doesn't change the fact that you're filing a personal income tax statement.

You should still register for the GST, unless your clients are consumers rather than businesses. (Businesses don't generally mind paying GST as they often get to write it off). However, once you start collecting GST, you'll be eligible to claim back the GST you paid on your business expesnes.

I didn't do this right away, and missed out on $1-2k of deductions.