# Where do you declare consulting money?



## iherald (Apr 18, 2009)

I'm doing my aunt's taxes. She did one small job for a company and was paid $2,000. They didn't give her a t4, just a cheque. Where do I declare that on the tax form?


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## RoR (Jan 18, 2012)

I *think* that would be self employment income. If it's under 30K then she doesn't have to charge people HST. 

But double check on that.


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## CanadianCapitalist (Mar 31, 2009)

Look up Form T2125. Statement of Professional or Business Activities.


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## OptsyEagle (Nov 29, 2009)

If she doesn't have any expenses to deduct against it and it is just a one time thing, I might just stick it into "other employment income", just for ease.


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## MoneyGal (Apr 24, 2009)

^^^ That.

Here's the link to the relevant section on the CRA site: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/104/menu-eng.html

If she has no intention to start up a business or continue earning self-employment income, it will be easier for her to report this as Line 104 income, rather than on a T2125. The T2125 route is not "incorrect" but it is more complex than what she requires for one event and if she's not taking any deductions against the income, the outcome for her is exactly the same.


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## CanadianCapitalist (Mar 31, 2009)

I did not know that myself. Thanks OptsyEagle and MoneyGal.


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## Homerhomer (Oct 18, 2010)

One thing to watch out for when reporting other income is the CPP, cra often questions it since reporting other income doesn't calculate cpp deduction, if someone alrady deducted max cpp based on employment/business income than this is not an issue, but if cpp is not maxed out this should be taken into consideration.
Reporting it as business income will help avoid any issues like this.


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## Russ (Mar 15, 2010)

She may be justified in claiming home office expenses. If so, she should report it as business income.


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