How should I file my taxes as a contractor?

Question

For background, I'm an Ontario, Canada resident, and I've worked here during all of FY2016.

For the first time, in addition to mostly doing full-time work as an employee of a company, I did just over 5 months of work as an independent contractor. During this time, I made less than $30k providing services in the private sector; this means that I qualified as a small supplier under the CRA's definition, and that my registration for an HST number is voluntary. I do not have an HST number as a result.

With tax season right around the corner, I'd like to know what to look out for (which forms I should/shouldn't fill out, mostly) aside from the normal forms one would fill out when receiving their T4 slips from "normal" work done outside of independent contracts.

Answer 1

For tax purposes you will need to file as an employee (T4 slips and tax withheld automatically), but also as an entrepreneur. I had the same situation myself last year. Employee and self-employed is a publication from Revenue Canada that will help you.

You need to fill out the statement of business activity form and keep detailed records of all your deductible expenses. Make photocopies and keep them 7 years.

May I suggest you take an accountant to file your income tax form. More expensive but makes you less susceptible to receive Revenue Canada inspectors for a check-in.

If you can read french, you can use this simple spreadsheet for your expenses. Your accountant will be happy.