I need help from Canadians

Tax issues

[blue_eagle]

I was wondering if we canadians have to report the adsense income. Since I have been with google for couple of months I have never thought about this.
I thought that since google doesn't send us the tax form, we dont have to report this.

I would appreciate any advice about this issue.

Thanks in advance..

[kodaks]

If you are a registered business in Canada, you must fill out Adsense on tax forms. Since this is a source of income, Government Canada will want to know about it.

The reason why Google does not require it, is because they are based in the U.S.

I hope this helps!
-kodaks

[blue_eagle]

Thanks,

I am an indivual. what is the case for indivuals?

[Macguru]

>>what is the case for indivuals?

As long your income does not pass 75 K, you wont have much benefits to incorporate. As an individual, you are responsible to report all of your incomes.

[Kimkia]

I have worked as a freelance writer in Canada for many years, but now receive most of my income from my web sites. I file a "Business and Professional Income Statement" even though I am not incorporated as a business. The good news is that when you file this statement, you can deduct many expenses related to income, including internet charges, office expenses, computer upgrades, and even part of your mortgage and utilities if you operate a home office that is exclusively devoted to obtaining the income you report.

Revenue Canada has lots of information available on their web site about this, and you can also call for advice. I've found them pretty helpful - but bottom line is, yes, you must report this income, minus any expenses you incur to receive it.

[balam]

Quoting from the Special Income Tax and Benefit Guide 2003:

Line 130 - Other income

Use this line to report taxable income that is not reported anywhere else on the return. To find out if an amount is taxable, contact us. [Uh, right. If you have money, they'll tax it! ;)] Make sure you have read the instructions for lines 101 to 129 first. In the space to the left of line 130, specify the type of income you are reporting. If you have more than one type of income, attach a note to your paper return giving the details.

(Lines 101 to 129 cover your total income from sources such as RRSP income, CPP (or QPP) benefits, interest (as in bank accounts), and disability benefits, as well as your regular wages reported on your T4 slip (box 14).)

Quoting from the top of Page 2 of the T1 SPECIAL 2003 Income Tax and Benefit Return:

As a Canadian resident, you have to report your income from all sources both inside and outside Canada.

While I've quoted from the Special Return, the same info (line numbers, etc.) is also valid for the General Return. (It's irrelevant to go into the difference between the two, so.....)

Canada Revenue Agency: [cra-arc.gc.ca...]

[blue_eagle]

Balam, Thanks a lot bro ;)