Tax deadline for self-employed Canadians is fast approaching

If you're self-employed, the deadline for you to file taxes in Canada is quickly approaching.

Canadians who are sole proprietors, freelancers or running a small business have until June 15 to file their 2024 income taxes and benefit returns in Canada.

Luckily, since June 15 falls on a Sunday this year, your return will still be considered on time if the Canada Revenue Agency (CRA) receives it by Monday, June 16.

However, even though you have until then to file, any balance owing was due on April 30.

The CRA shared a guide on what self-employed Canadians should know about filing their taxes.

"If you earned self-employment income in 2024, you must report it on your tax return. This includes income earned through gig work, social media platforms, freelancing or running a small business," explained the government agency.

As a self-employed person, you may have to pay:

• Personal income tax (if you are a First Nations business owner, you can find information on the tax benefits and requirements that apply to you at Information on the tax exemption under Section 87 of the Indian Act)
• Canada Pension Plan contributions
• Employment Insurance premiums if you are eligible and have registered to participate

Canadians who earn income through digital platforms like ride-sharing, food delivery or freelance services must report it on their tax return. Gifts, tips and donations received through online platforms are also generally considered taxable income, according to the CRA.

The agency is reminding self-employed Canadians to register for a GST/HST account if they make more than $30,000 in taxable supplies over a single calendar quarter or over the last four consecutive calendar quarters.

"If you are registered for GST/HST, you must file your returns electronically," stated the CRA. "If you participate in commercial ridesharing activities, the small supplier threshold does not apply, and you must register for a GST/HST account the moment you start earning revenue."

It adds that filing your GST/HST returns on time helps you avoid penalties and interest.

If you want to receive benefits and credits like the GST credit, the Canada Child Benefit and other provincial or territorial credits, the CRA highly suggest filing your taxes on time to ensure you don't get any benefits you're qualified for late.

Feeling overwhelmed about filing your taxes as a self-employed individual in Canada?

The CRA offers a free Liaison Officer service to help small business owners and self-employed individuals understand their tax obligations.