Fletcher Gailey-Snell likes to draw t-rexes and triceratops, hammerhead sharks and belugas.

He doesnB次元官网网址檛 particularly enjoy thinking about taxes.

ItB次元官网网址檚 why the Ottawa man and his wife Ashley Faragher hired a professional to help them understand the tax implications of their small business, Fletch Robbins, which sells Gailey-SnellB次元官网网址檚 illustrations of dinosaurs and animals in the form of t-shirts, cards and prints.

B次元官网网址淚t is our side hustle. So even the time it takes to be able to file our taxes properly is not something we necessarily have,B次元官网网址� said Gailey-Snell, who holds a full-time job on top of his artistic passion project.

B次元官网网址淔or us, itB次元官网网址檚 just the two of us running this thing. So anything we can delegate is helpful, to help us focus on the stuff thatB次元官网网址檚 important to us.B次元官网网址�

Gailey-Snell is definitely busy, and heB次元官网网址檚 not alone. According to a Maru survey conducted in January on behalf on TurboTax Canada, 23 per cent of Canadians reported having a side gig in addition to their primary employment.

Of those, 85 per cent said the rising cost of living was a factor in their decision to pick up secondary employment, according to the survey.

That makes it fair to assume that with inflation hitting new heights in 2022, many Canadians were likely new to the B次元官网网址渟ide hustleB次元官网网址� game B次元官网网址� and just as unsure of the tax implications as Gailey-Snell was when he started his business.

In fact, Emily Verrecchia, a tax expert with TurboTax Canada, said questions related to self-employment and gig work were among the most common questions she heard from clients last year.

B次元官网网址淚 personally see it a lot,B次元官网网址� she said.

B次元官网网址淚 think the best advice I could give for anyone whoB次元官网网址檚 doing this for the first time is organization. If you can stay on top of everything thatB次元官网网址檚 happening around your business, even if itB次元官网网址檚 just taking notes on things you spend money on, that can really help you when tax season is on your door.B次元官网网址�

While side hustles can vary B次元官网网址� from tutoring to freelance writing to cake decorating B次元官网网址� Verrecchia said itB次元官网网址檚 important to keep track of income and expenses because including your side hustle on your tax return is mandatory.

B次元官网网址淭here may be those people out there who think B次元官网网址榦h, this is just a hobby,B次元官网网址橞次元官网网址� Verrecchia said.

B次元官网网址淏ut as soon as you start to charge for your service, there is an exchange there and a realization of revenues. So you do have to report it.B次元官网网址�

If your side hustle involves working as a contractor for a big tech company B次元官网网址� for example, youB次元官网网址檙e a driver for Uber B次元官网网址� you should get a statement from the company detailing your earnings. However, itB次元官网网址檚 still your responsibility to report whatB次元官网网址檚 on that statement to the Canada Revenue Agency.

If youB次元官网网址檙e not a contractor and are truly self-employed, there are a number of free apps available that can help you keep track of revenues and expenses.

The good thing is that there are many expenses you can deduct from your income as a self-employed worker. These include supplies, home office space, even professional development.

B次元官网网址淏ut some deductions only apply to some industries, so I strongly suspect talking to an expert if youB次元官网网址檙e not sure,B次元官网网址� Verrecchia said.

Yannick Lemay, spokesman for H&R Block, said while some people need help to not miss deductions theyB次元官网网址檙e entitled to, others may think theyB次元官网网址檙e entitled to deduct more than they really are.

B次元官网网址淔or example, to be able to deduct the business use of your home, it needs to be your main place of business, and you need to work there more than 50 per cent of the time,B次元官网网址� Lemay said.

B次元官网网址淪o if you go and do work at the homes of your clients B次元官网网址� mobile massages, for example B次元官网网址� then youB次元官网网址檙e not working at your home more than 50 per cent of the time, even though you may do your bookkeeping at your kitchen table.B次元官网网址�

Another common pitfall, Lemay said, is that if youB次元官网网址檝e switched to being self-employed and donB次元官网网址檛 have taxes deducted regularly from your paycheque, you will need to start paying your income taxes in installments.

B次元官网网址淭hat first year, the CRA wonB次元官网网址檛 send you a letter because they donB次元官网网址檛 know yet that you owe them taxes,B次元官网网址� Lemay said. B次元官网网址淪o itB次元官网网址檚 on you to pay those tax installments during the year, otherwise youB次元官网网址檒l pay interest.B次元官网网址�

Taking the time to consult a professional can also help you access benefits youB次元官网网址檙e not even aware youB次元官网网址檙e entitled to. The Canada WorkerB次元官网网址檚 Benefit, for example, is a refundable tax credit available to Canadian workers B次元官网网址� including self-employed workers B次元官网网址� earning revenue of $30,000 or more.

For his part, Gailey-Snell fully recommends getting professional advice, even if your side hustle is just getting started or youB次元官网网址檙e not earning much income yet.

B次元官网网址淚 remember the first time we hired our tax person to help us, we were surprised at how little money it cost to hire a specialist, and we were amazed how much money they were able to help us get back in things we would just never even think of,B次元官网网址� he said.

B次元官网网址淭hey were all things we legitimately can claim against the business, we just never thought of it because itB次元官网网址檚 not our area.B次元官网网址�

B次元官网网址擜manda Stephenson, The Canadian Press