Tax season is here and for some of you, it might be the first time reporting your online income. Yes, Canada Revenue Agency (CRA) does expect you to pay taxes on your online earnings. However, its not all doom and gloom, just as you pay taxes on income earned, you also get tax relief on business expenses. Knowing your expenses can reduce a tax bill and may even increase a tax refund.
The first thing you should do is find yourself a good tax preparer, not some national, franchise tax service. Those places with a gorilla outside, tossing an arrow sign, cannot advise you, they only record what you tell them. A good tax preparer will sit down with you, talk with you about your business and be able to advise you on what deductions are appropriate for your situation. There are accountants, and bookkeepers, who are able to prepare and file your taxes for you.
Here is a list of some of the things you might be able to claim as business expenses for your online marketing.
This is just a few ideas to get you started thinking about possible online marketing expenses, that you can present to your tax preparer. A good tax preparer is worth their weight in gold. This is their expertise so use it. They can advise you best on which expenses are currently allowed (CRA does like to change the rules) and also what percentage of the expense can be justified as business related. Your cell phone is a legitimate expense but you might only be able to really justify 25% is business use.
Marketing Gurus often talk about “leaving money on the table”, referring to missed income opportunities. However, missed expenses can be just as big a lost opportunity.
Need Money? Should you Withdraw from your RRSP?
Financial Literacy Lessons Should Begin Early in Life
Over-contributed to your TFSA or RRSP? Here’s what you should do.
Financial Considerations for First Time Home Buyers
Will Covid-19 Relief Measures Affect my Taxes?
Covid-19 Now is the Time to get Serious About Your Financial Wellness
What does your CRA Notice of Assessment Mean?
What you Should do with your 2019 Tax Refund