Home-based Business

I work from home and have a small income- do I still need to pay taxes?

Yes. Taxes are based on the amount and sources of income and the types of products or services sold, not the location of the business. If you income is below the amount that is taxable, you should still file your taxes even if you do not pay in. You may still need to make EI and CPP contributions, and if you have a net loss you can carry it forward and claim it against future earnings to save in income tax down the road. Also, if you work from home, you can claim a certain amount of rent and/or utility costs as a business expense. If this all seems overwhelming, talk to a bookkeeper and small business tax expert.

Janet McCausland
Home-based Business

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