tax question, is exchange rate tax a thing? help!
Hi everyone
I live in canada and work on mfc fulltime, and I get my money from them by getting cheques in the mail (just what I prefer). Anyways, usually when I go to the bank to deposit my cheque I get quite alot more money then I expect because of the exchange rate, so thats always nice and a plus.
Howeverrrr, im abit confused. In just a random conversation on mfc me and my viewers were talking about how camgirls must love living in canada and getting extra money because of the exchange rate (I didnt bring it up nor talked about how much money i make to my viewers) and one viewers said "that must be great getting the extra money because of the exchange rate on a good day but thats also gotta suck because you have to file more taxes and exchange rate taxes"
umm what? lol I filed my taxes for the first time here in canada this past year and filed self employed with a tax consultant and gave him all my paystubs etc and just paid what I had to pay. We never talked or discussed the more money I get because of exchange rates and just paid what was owed on my taxes
Am I missing something? are we as international camgirls supposed to be filing taxes as self employed (as i know) AND pay a different kind of tax ontop of that because of the exchange rate?
This member just confused me with that remark is all and i didnt want to get into that on cam, and i dont want to be missing something and get into any trouble with my taxes
any help would be super appreciated!
Re: tax question, is exchange rate tax a thing? help!
He was confused.
From the CRA:
"Line 104 - Foreign employment income
Foreign employment income is income earned outside Canada from a foreign employer. Report this income in Canadian dollars."
That only applies if you are working outside of Canada. Since camgirls are independent contractors we don't work in the US, even if that's where our websites are based.
You can then just file your taxes based on your CAD earnings deposited (since we don't get issued 1099s). You'll have to pay income taxes on the higher amount you've earned once converted to CAD, but that's it.
Re: tax question, is exchange rate tax a thing? help!
Quote:
Originally Posted by
belleoftheball2
He was confused.
From the CRA:
"Line 104 - Foreign employment income
Foreign employment income is income earned outside Canada from a foreign employer. Report this income in Canadian dollars."
That only applies if you are working outside of Canada. Since camgirls are independent contractors we don't work in the US, even if that's where our websites are based.
You can then just file your taxes based on your CAD earnings deposited (since we don't get issued 1099s). You'll have to pay income taxes on the higher amount you've earned once converted to CAD, but that's it.
Exactly that is what my financial planner told me when I would meet with her and work out my financial goals.
if they were sending us out a t4A we would be filing taxes on US dollars
The easiest thing is to file based on the pay stubs but CRA sees your bank account. if you get audited they could ask you why the numbers don't match.