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Gig economy side hustle complicates taxes for Canadians

But only 5% of respondents said they were confident in filing their taxes, something that is complicated by a common element of gig economy workers’ income — tips.

While tipping is often seen as a friendly reward for a job well done, the CRA doesn’t see it as separate from other income, even if it’s contingent work to help pay the bills.

“No matter her status, all income must be declared — including cash payments and tips,” said tax expert Josie Cabral of H&R Block Canada. “The good news is that for many gig workers, there are many deductions and expenses that can be claimed. There is no one-size-fits-all approach, but it is important that Canadians have a thorough understanding of their individual tax situation. Enable them to maximize their refund.”

The survey found that many Canadians were unaware that tips were taxed, but 38% said this knowledge would prompt them to tip more, while 56% said they would pay for goods and services. Will pay more if gig economy workers are paid better.

gig economy intentions

The survey also asked about participation in the gig economy.

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