This past financial year I had a contractor service my clients whilst I was on maternity leave. It was an 80/20 split. How do I fill out tax return with this information? That is, I only made 20% profits this year. I also was employed in a government job which I got paid maternity leave and also worked for part of the year.
Howdy @graceesther,
Report the 20% profit you made from the contractor’s services as business income in your tax return.
You can also deduct any business-related expenses you incurred. Such as payments to the contractor (80% of the total earnings).
If the income you received from the contractor’s services is classified as Personal Services Income (PSI). You need to follow specific rules:
There are specific deductions you can claim if PSI rules apply. Ensure you only claim allowable deductions.
Howdy @graceesther,
Report the 20% profit you made from the contractor’s services as business income in your tax return.
You can also deduct any business-related expenses you incurred. Such as payments to the contractor (80% of the total earnings).
If the income you received from the contractor’s services is classified as Personal Services Income (PSI). You need to follow specific rules:
There are specific deductions you can claim if PSI rules apply. Ensure you only claim allowable deductions.
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