Are you a social media influencer?
Tax tips if you are earning money from it.
Earning money from being a social media influencer?
If you're using YouTube, TikTok, Instagram, Twitch or other platforms to make a living, that means the government wants you to report your monetary and non-monetary earnings.
What you need to claim:
Social media influencing is becoming a very popular choice in earning a living, so the CRA is looking at people that may not be meeting their tax commitments.
Have you received 'freebies' like clothing, gifts, products or trips in exchange for promoting their wares?
Are companies sending you their products for you to promote on your platform?
If you are generating an income from this, it means you are operating as a business.
Aside from the obvious of claiming the money you earn on your taxes, you must also include the fair market value cash equivalent of the products you received.
Depending on how much you are making, you may also be required to pay GST and/or HST on those earnings.
You can get more details on GST/HST registration requirements here.
On the good side:
Since you are running it as a self employment business, you can also claim expenses which can help lower how much you owe the government. The expenses need to be directly related to your business activities and reasonable claims. Things such as internet fees, computer purchases and other things needed for your platform, may be included.
To learn what qualifies as an eligible business expense, go to Business expenses.
Claim for previous years:
Did you earn a living from these platforms in past years that you didn't claim for? If you voluntarily correct them, you can avoid or reduce penalties and interest.
- To correct a past income tax report
- Adjust your GST/HST return
- To submit an application through the Voluntary Disclosures Program
For more information:
You can find more information on this topic at Canada.ca/platform-economy.