Canadians: Paying Tax on Online Survey Income

Canada Revenue Agency requires all income generated by individuals and businesses throughout the year, to be claimed on their income tax returns.

Income generated by online surveys is considered "other income" and should be entered on line 104 on an individual tax return. Report the full amount of income you generated on this line, and simply label it as "online survey taking".

You will not be issued a T4 form by an online survey company at the end of the year, as being a participant in surveys does not make you an employee of these companies. Rather, think of it as being self-employed for the duration of the survey.

The amount entered on line 104 of your individual income tax return will be added to the income you generated throughout the year from other sources, i.e. employment, investments, etc. The federal and provincial income tax rates vary per year and per province, however the federal tax brackets and rates are as follows:

2008 tax brackets are as follows;

  • 15% on the first $38,832 of taxable income;
  • 22% on the next $38,832 of taxable income;
  • 26% on the next $48,600 of taxable income;
  • 29% of taxable income over $126,264.

2007 tax brackets are as follows;

  • 15.5% on the first $37,178 of taxable income;
  • 22% on the next $37,179 of taxable income;
  • 26% on the next $46,530 of taxable income; and
  • 29% of taxable income over $120,887

2006 tax brackets are as follows;

  • 15% on the first $36,378 of taxable income;
  • 22% on the next $36,378 of taxable income;
  • 26% on the next $45,529 of taxable income; and
  • 29% of taxable income over $118,285.

More information can be found at: http://www.cra-arc.gc.ca/tax/individuals/faq/taxrates-e.html

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