Example #1 How to claim

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Client is a young adult trying to save money for school.  She is babysitting her boyfriends nephew and wanted to know how to claim the money and do her tax return

First of all if you must keep track of your income. You can claim the money earned on your personal return. There is a form that we would fill out with your business income and expenses. As for expenses what did you incur for your business and what can you back up? Assume you will be audited every year and keep your receipts with your tax return. You can claim your phone, internet, and some home expenses if you made a profit after all other expenses. The part of your home will be based on how big your home is and the square footage used for the business. So if you use 10% of your home are for business, then 10% of your rent, electricity, heat, property insurance and home phone can be used. If you used your vehicle then you will need to keep an accurate diary of when it was used for business, and how many kilometres driven for business. Based on the non business mileage and business mileage a percentage will be worked out. If it is 10% then you can claim 10% of your fuel, insurance and repairs.
The person that you babysit for must also be issued a receipt for your services as they wish to claim daycare on their tax return.

in Uncategorized by jeanette Comments are off