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As more Montrealers make money in the digital economy — whether as Uber drivers, Instagram influencers, Etsy sellers or Twitch streamers — many don’t realize there are benefits to including those earnings in their income when they do their taxes.
Earnings from online platforms, including payments, sponsorships, gifts and products for your services, all count as business income in the eyes of Revenu Québec. Reporting this income fulfills your tax obligations and unlocks perks you don’t want to miss out on.
Get tax credits and deductions
Reporting your online income may make you eligible for tax credits and deductions. Whether you’re delivering for DoorDash or making money on Twitch, eligible business expenses like gas, equipment, and even part of your rent (if you work from home) can be written off.
Strengthen your financial profile
Reporting your online income can help improve your standing with financial institutions, which can make it easier to secure a loan when the time comes to buy a house or car. Lenders want to see reported income, and being transparent about your online work boosts your credibility.
Unlock parental benefits
Reporting your income qualifies you for Quebec’s parental insurance program for when you start a family. This means that you’ll get financial support when you need time off to care for your child.
Woman recording audio programGeorge Milton | Pexels
Grow your retirement savings
The more income you report, the higher your registered retirement savings plan (RRSP) contribution limit is, meaning you can lower your taxable income now all while preparing for the future. Plus, when you retire, your retirement pension from Retraite Québec will be based on your total work income, giving you more financial security in the long run.
Avoid interest
Not reporting income from side gigs or online work can lead to interest piling up on any income tax you have to pay. By reporting the income, you ensure you won’t face any unexpected issues later.
Even if your online activities are part-time, they still count. By reporting income from them, you not only avoid having to pay interest, but you can also unlock advantages you might not have thought of when starting out.
To learn more about the digital economy, visit Revenu Québec’s website or Facebook page.
This content is for general informational purposes only and does not constitute financial, investment, legal, tax or accounting advice.
