Where do I enter tips on my tax return? What percentage do I report?
Where do I enter tips on my Canadian tax return?
Put them on Line 104: Other Employment Income. But before you do this, double check that your employer does not report any of your tips on your T4. Some employers pay a set amount of tips to their employees and will usually include these amounts in Box 14 on your T4 slip. Sometimes they may include those amounts that customers leave as tips on credit cards. Having to report them once is bad enough.
Do not enter tips on Line 130: Other Income, unless you’ve got a crush on your local CRA auditor. (Hey, it could happen).
What percentage of my tips do I have to report?
100%. If you don’t know exactly how much in tips you received during the year, estimate as accurately as you can. Don’t estimate it as 10% of your annual wages (Gross Pay) because Stan Superserver told you that’s what he does, and he has never had a problem.
Read this post on tips for more details.
Help out your fellow servers by taking this 1-question survey about how much your tips are.
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