The same goes for if you do any cash gigs. Not only do you need to claim that cash as income when filing your taxes, but you also need to pay tax on it. For instance, if you earn cash tips from your job, that is considered taxable income. That being said, there are a few exceptions in which you aren’t self-employed but still need to set aside money for income taxes. Self-employed simply means you are earning income by yourself, outside of an employer. If you’re a freelancer, if you’re a small business owner, or even if you have a side hustle, all of those would fall under the umbrella of self-employed. There are a ton of different terms for being self-employed, so I want to start with clearing some things up. The only thing I get help with is I hire a tax accountant to help me file my taxes every year (and she’s worth every penny!). Believe me, I’ve been doing my own bookkeeping for almost 4 years. Luckily, it’s not that complicated or much work to do on your own. Instead, when you become your own boss, you also become your own bookkeeper and accountant (unless you choose to hire someone to do that for you). When you’re self-employed, you’ll always have a tax bill to pay because you won’t have an employer doing all that work for you.
#TURBOTAX CALCULATOR 2017 CANADA FREE#
That’s right, a tax refund is not free money! It’s literally the government giving you back your own money. A tax refund simply means you’ve overpaid on your taxes, so the government is paying you back. Or, in most cases, they’ll have taken off too much, and/or you’ll be eligible for some tax deductions and credits, thus providing you with a tax refund. If your employer took off the right amount of money from your pay, your tax bill should $0. That’s why when you’re an employee, you shouldn’t have a tax bill to pay after you file your taxes. When you’re an employee, your employer deals with all that for you by taking a percentage off your gross pay and submitting it to the government on your behalf. It also means you have to pay that money directly to the government via your CRA My Account. So, what’s the big difference between being an employee earning a paycheque at a company compared to being self-employed? Well, when you’re self-employed, that means that you become fully responsible for setting aside money to pay your income taxes and contribute to the Canada Pension Plan (CPP).
#TURBOTAX CALCULATOR 2017 CANADA SERIES#
0 kommentar(er)
