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I am a high school math tutor in Canada and make about ten grand a year from it. I am wondering how to pay tax on this as i do not have an employer. I am payed in cash so there is no digital record of my work.

Thanks for the help

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You would be required to report it as self-employment income and pay tax accordingly. It's up to you to keep proper records (like a receipt book, for example), especially when it comes to cash. If you can't prove exactly how much you earned and the government decides to guess the amount for you then you won't like the outcome!

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There is a moral and legal obligation to file the earnings. Not doing so is tax fraud. You should keep a ledger or some record of your earnings, helpful guidelines here.

Records are required by the CRA:

According to the law, your responsibilities include:

  • protecting your records, even if you hire a third party to hold them for you;
  • making your records, including supporting documents, available to the CRA when it asks for them (the CRA might inspect, audit, or examine your records, as well as your processes and property);
  • making sure that you, your employees, or your third-party record keeper is present when CRA officials examine your records at the address where you keep them (you must also make sure that your representative is cooperating with the examination by providing reasonable assistance and answering questions about your business);
  • allowing CRA officials to make copies, or giving them copies, of any records they need.

(source)

You could get in trouble if one of your pupils report the expense at their tax filing, and the CRA finds no matching statement on your filing report.

Tutoring are eligible for tax credit in case of disability:

Tutoring services that are supplementary to the primary education of a person with a learning disability or an impairment in mental functions, and paid to a person in the business of providing these services to individuals who are not related to the person. A medical practitioner must certify in writing that these services are necessary.

So if one of your pupils fall under that provision, you will get tax trouble sooner or later.


Bottom line: start making records now, and report your earnings. Collect your tax as any lawful citizen is required to.

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