Yes. Tips, gratuities, and income earned from occasional or temporary work are taxable income and must be reported on your income tax return for the year. This type of income may or may not be included on your T4 slip, but it is your responsibility to track all earnings and report them.
If you are a Canadian resident outside Québec, you must report these income amounts on your federal return.
If you are a Canadian resident in Québec, you must also report these income amounts on both your federal and provincial tax return.
By reporting tips, gratuities, and income from occasional work, you may be able to:
- Contribute to the Canada Pension Plan (CPP) or Québec Pension Plan (QPP) for this income
- Claim the Canada Employment amount
- Claim deductions for CPP or QPP contributions on self-employment and other earnings
Where do I claim this?
Follow these steps in H&R Block’s tax software to file your 2015 taxes:
- Click the PREPARE tab.
- Click the YOUR YEAR IN REVIEW icon. You will find yourself here:
- Select the checkbox labelled I was employed.
- Scroll to the bottom of the page and click Continue.
- You will find yourself on the PREPARE tab, under the EMPLOYMENT icon:
- Under the EMPLOYMENT heading, select the checkbox labelled Tips or other employment income.
When you arrive at the page for Tips or other employment income, enter your information into the tax software.
Where can I learn more?
- Line 104 – Employment income not reported on a T4 slip (CRA website)
- Line 363 - Canada employment amount (CRA website)
- CPT20 Election to Pay Canada Pension Plan Contributions (CRA website)
- Line 310 - CPP or QPP contributions on self-employment and other earnings (CRA website)
- Line 222 - Deduction for CPP or QPP contributions on self-employment and other earnings (CRA website)