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Track and report

your tips and

gratuities

Source - Canada Revenu Agency

 

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 as income, and you must declare all of it.

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 directly by the consumer) as part of the work you do, it is your responsibility to follow these three steps:

 

  1. Track all your tips and gratuities received throughout the year and keep a copy of your tracking document. 

  2. Calculate the total amount between January 1 and December 31. 

  3. Report the total amount received on line 104 of your income tax and benefit return.

 

Find out more about how to track, calculate and report your tips.

If any of your tips and gratuities are controlled by your employer, your tip income amount should already be included on your T4 slip. If you’re not sure, ask your employer.

 

Get more information about your employer’s responsibility if your tips and gratuities are controlled.

 

For tips earned within the province of Québec, visit the Revenu Québec website.

Did you know ?
 

  • Reporting all your tips and gratuities is to your advantage. Learn more about the benefits.

  • If the Canada Revenue Agency (CRA) reassesses your tax return and you haven't declared all your tips and gratuities, you will have to pay what you owe, plus interest and penalties.

  • The Voluntary Disclosures Program (VDP) gives you a second chance to correct a tax return you previously filed or to file a return that you should have filed. Read more about the VDP.

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