In this modern world, there are so many people making an earning by writing blogs and creating vlogs. They get their main source of income by blogging. It is highly flexible and an exciting job to do. However, the least exciting part is paying the income tax.
This profession is like self-employment. Hence, it can involve the same level of complexity. In this blog, we will describe a few things that will help you understand it better.
Do you need to pay taxes for the blog income?
Yes! According to CRA, blogging qualifies as self-employment. It doesn’t matter if you are operating as a sole proprietorship or freelancing. As long as you have a steady source of income from it, you should pay your taxes.
The form you should use
The income tax form for blogging income is the T2125. If you have an additional corporate job, you need to fill out the regular T4 form along with this one. But, what happens when you have multiple side-hustles like blogging, modeling, and acting? You should get a separate T2125 form for each and fill it out accordingly.
What counts as income?
When it comes to blogging, cash isn’t the only income. You should list non-monetary and near-monetary compensations you get for your work too. For example, an increasing number of companies compensate bloggers with gift cards and products. When filing for tax, you need to include the fair monetary value of these in the respective fields.
Finally…
Luckily, similar to other income tax filing, you can apply many tax deductions. It includes internet charges, hardware and software expense, electricity bills, and travel expense to list a few. Calculating taxes, not your forte? Get a tax consultant and let them work for you!
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