You can make money in lots of different ways. Not all of them are taxable.
You don’t need to report …
- Lottery, bingo or racetrack winnings
- A loan repayment from a friend
- Infrequent payments of less than $500 (like a garage sale)
- Most gifts and inheritances
- A windfall, like a personal injury settlement
You must report, but don’t need to pay tax on …
- Ontario Works
- Other social assistance, such as ODSP (if over $500 in a calendar year)
- Money from selling the home you live in
You must report, and if your income is high enough, pay tax on…
- Money you made, such as from an odd job, that is more than $500
- Tips you receive as part of your job
- Foreign income you earned through an internet business
- Your pension, OAS, CPP, RRSP cash out, contracting and
- other forms of income (even if they are less than $500)