UpWork is a great way for Canadian freelancers to make some extra money. But how do you report this income come tax time?
The first thing you need to do is create a free account on UpWork. Once you have done this, you will need to verify your email address and phone number. After your account has been verified, you can then start applying for jobs.
When it comes to finding work on UpWork, it is important to search for jobs that are in your skill set and also in your desired price range. Once you find a job that you are interested in, you can then apply for the job by submitting a proposal.
Once you have been hired for a job, it is important to complete the work in a timely and professional manner. Once the work is completed, the client will then release the funds to you. It is important to note that when you withdraw the funds from UpWork, they will take a small percentage as a service fee.
When it comes time to file your taxes, you will need to include your UpWork income as self-employment income. This means that you will need to file a T2125 form with your tax return. On this form, you will need to include information such as how much money you earned from UpWork and any expenses that you incurred while working on UpWork jobs.
Overall, reporting UpWork income in Canada is not complicated. However, it is important to make sure that you are keeping accurate records of your income and expenses. This will make filing your taxes much easier come tax time.
How Do I Report UpWork Income in Canada?
In order to report your income from UpWork, first create an account and verify your email address and phone number. Then, start searching for jobs that match your skillset and desired price range. Once you find a job opportunity, submit a proposal and if accepted, complete the work in a timely and professional manner.
When the job is completed and the client releases the payment, remember that UpWork takes a small percentage as a service fee. At tax time, include your total UpWork earnings as self-employment income on form T2125 which must be filed with your return. Make sure to keep accurate records of all earnings and expenses related to each individual job in order to make filing taxes much easier come tax season!
