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  1. #1
    Newbie
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    March 26th, 2012
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    Canadian Affiliate Tax Help
    Hey, I have a couple questions about claiming income earned online via selling websites or affiliate marketing.

    I am a Canadian with no registered business and no income other than online.

    First part of income comes from affiliate income from US companies.

    Second part comes from developing a website and selling it it US buyers.

    I'm filing my taxes online with handrblock.

    I don't know where to claim the income from affiliate and website sales.

    T4 and employment income (includes EI benefits)

    Self-employed business income (I am not a business though)

    Foreign income or foreign property if it is this then under what?
    Other foreign income?
    Foreign business income?


    Those are the 3 options I can think of that would fit for my income, can anybody tell me exactly which ones to choose?

    there's also an option for "other income" on the website. Which gives options one of which is "Other taxable income (federal line 130)"


    Thanks in advance for the help!

  2. #2
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    January 22nd, 2007
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    Can't tell you any specifics re Canadian tax laws or forms, but if you were a US taxpayer I'd tell you that just because you have not registered with any licensing agency that does not mean, at least for tax purposes, that you are not a business, which you are. In the US, you would show income and expenses on Schedule C. I'm sure there would be a Canadian equivalent.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  3. #3
    OPM and Moderator Chuck Hamrick's Avatar
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    Self-employed business income (I am not a business though)
    You are absolutely self employed if you make your money online as an affiliate. Perhaps one of our Canadian members can comment on how they classify themselves.

  4. #4
    Newbie
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    March 26th, 2012
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    thanks for the support so far - hopefully we can get some Canadians to help me out soon

    The self employeed option has the following to pick from:

    T2125 - Business income
    1T2125 - Professional income
    1T2125 - Commission income
    Last edited by Anthony11690; March 26th, 2012 at 04:16 PM.

  5. #5
    ABW Ambassador kse's Avatar
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    November 29th, 2005
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    Here is what I do:

    Self-employment Income
    >>> Commission income (line 166)
    When you fillout T2125, you will be asked for an Industry code I use 454111

    What I do is add up ALL of my affiliate earnings in Canadian $ and put in part 1 of T2125

    Then in part 5 (and Business-use-of-home expenses) of T2125 I put in my expenses

    Good luck, I did my taxes this week-end and I owe the tax man big time!!!
    MERCHANTS: Start showing your coupons directly on your site, that way your shoppers will stop leaving your site looking for them!! If not then remove your Coupon Box!!

  6. #6
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    March 26th, 2012
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    Thanks! That helps big time - What do I do as far as website sales?

  7. #7
    ABW Ambassador kse's Avatar
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    November 29th, 2005
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    Quote Originally Posted by Anthony11690 View Post
    What do I do as far as website sales?
    I not 100% sure about that, but I would think (guess) that you could use line 162 (Business Income) or maybe even better line 164 (Professional Income) but make sure you do not claim the same expenses twice.
    MERCHANTS: Start showing your coupons directly on your site, that way your shoppers will stop leaving your site looking for them!! If not then remove your Coupon Box!!

  8. #8
    Newbie
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    March 26th, 2012
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    Thanks for the much needed help, highly appreciated guys and gals!

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