'It’s not tax free': Expert tips for reporting income from side hustles

An increasing number of working Canadians are turning to the gig economy for extra cash, but a wealth planning expert says that earnings from side hustles still count as taxable income.

“With the cost of living going up, more and more people are finding extra ways to earn income,” Julie Seberras, head of wealth planning at Manulife Wealth, told BNN Bloomberg in a Monday interview.

“But that income is of course taxable and does need to be reported on your annual tax return, so whether that's from an employer, the gig economy or a side hustle, that all needs to be included, and you need to pay tax on that at your marginal tax rate.”

Seberras recommended that anyone with a side-gig keep records of the money they earn throughout the year, including receipts and invoices. She noted that expenses can then be deducted when it comes time to file.