Find out how you should track and report all your tips and gratuities
In Canada, the amount you earn in tips and gratuities is considered to be income, and you must report all of it on your tax return.
How you report your tips and gratuities depends on whether you receive them directly, or through an arrangement with your employer. If you receive direct tips or gratuities (amount paid to you directly by the consumer) as part of the work you do, it is your responsibility to follow these three steps:
- Track all your tips and gratuities received throughout the year and keep a copy of your tracking document.
- Calculate the total amount of tips earned between January 1 and December 31 of the year for your tax return.
- Report the total amount received on line 10400 of your income tax and benefit return.
Find out more about how to track, calculate and report your tips.
