What Counts as Income from Cash Jobs?
Babysitting or childcare
Lawn care, snow removal, or handyman services
Freelance work or side gigs
Any other services paid in cash
Why Do Cash Jobs Need to Be Claimed?
CRA Regulations: All income, regardless of amount or payment method, is taxable under Canadian law
Avoid Penalties: Failing to report cash income can result in fines, interest, or audits by the CRA
Build Contribution Room: Declaring income contributes to your RRSP and CPP/QPP benefits
How to Report Cash Income
Track Your Earnings: Keep a log of all cash payments you receive, including dates and amounts
Include It on Your Tax Return: Report cash income under self-employment income or other income, depending on the type of work
Deduct Eligible Expenses: If the cash job involves expenses (e.g., tools or supplies), you may be able to deduct these costs
Best Practices for Compliance
Issue or request receipts for cash transactions
Keep detailed records for at least six years in case of a CRA audit
Open a separate bank account to track income and expenses from small jobs
Why This Matters
Claiming small cash jobs ensures compliance with CRA regulations, protects you from penalties, and helps you qualify for government benefits and credits based on your declared income.