Tax time in Canada! That time of year when people begin collecting pay stubs, receipts, loan statements, and various other reports to compile and learn how much they earned and how much they owe the government, or the government owes them. This year, I have a new item on my collection list of info to gather: my 2017 BTC earnings and expenditures!
Fortunately for me, my interest-bearing wallet over at Freebitco.in lists the last 100 transactions under my stats button on the menu bar. These stats go all the way back to April 9th for me, which was the very first amount I sent over after discovering their new wallet status and the daily compounded interest payments! I copied my deposit stats to a spreadsheet and discovered I earned myself a whopping 0.006+ BTC last year! Considering I did it entirely with the use of Faucet Alley (a combination of faucets and a BTC site), and that’s pretty good for only investing time and effort. At today’s USD exchange value, that’s a total of $64.51. If exchanged into Canadian, I earned $81.96 at current rates. The only figure I don’t have at the moment, is how much of my total interest amount at Freebitco was earned on my 2017 deposits. Reviewing what the CRA has said regarding reporting expenditures spares me this calculation for this year. They only want the value of the BTC I spent at the time I spent it. This is easy for 2017 as I made just two purchases with a BTC pre-paid credit card to help cover a monthly subscription fee. I go to that site and it tells me the exact amount I spent in CAD.
For 2018 however, I will need to start keeping other receipts, such as those I spent in January proving that I could shop at a thrift store using a BTC-pre-paid physical debit/credit card. I kept one of those receipts, but the other was a grocery purchase and I almost NEVER keep those! So I think that amount will have to be estimated. Fortunately, the price of the item rarely changes. I will need to keep track of these things when I go to do my 2018 incometax.
I’m actually excited at the prospect of figuring all this out! To me, this is the logical culmination of the 2017 experiment, as I figure out how to be above board with my earnings, their interest and how I spent it.
Interestingly, the CRA official rules do not account for EARNING BTC as opposed to buying/investing Canadian funds into BTC. Capital gains tax applies in the latter scenario, but there seems to be an odd silence about the first at least from the position of someone who is not someone else’s employee. Clearly, the idea that someone can earn their way into possession of BTC according to CRA can only happen if a seller of goods and services accepts BTC as a form of payment, if they buy BTC on an exchange or via a BTC ATM, or if their employer paid them via BTC. Employers paying employees via BTC have to report the CAD equivalent in their payroll records at this time.
I have set up my website to allow for the payment of my services via BTC, but no time block purchases as of yet. When a seller accepts BTC as payment, the CRA says this falls into the barter set of income-reporting rules. This is handy information once clients do start payment for my services via BTC.
Incidentally, accounting programs such as Quickbooks now have a BTC module to assist a business in keeping track of this form of payment for their storefronts. Plugins for WordPress and online e-commerce sites exists from the likes of Bitpay and GoURL to allow online businesses to accept BTC, that’s actually how I am able to accept it at FCS. Companies such as Bitpay and Ingenico have teamed up so that brick-and-mortar stores who use the Ingenico POS terminal can simply enable a Bitpay plugin and accept BTC at the cash register.
The stage is being set for sellers of goods and services to almost seemlessly accept BTC as just another currency at the till.
As I wrote this blog post today, I was referencing CRA notices and my own records. The process meant updating my records (another plus) and ensuring I have what is necessary for last year before April this year! *happy dance*
Be sure to explore the various links in today’s post, particularly if you are a Canadian reading this! If you are dabbling in BTC, you might need this information too.
*Do note: Some of the links in this article are affiliate links.
FAQs
The CRA will not use text messages or instant messages to start a conversation about your taxes, benefits, or My Account. The CRA will not ask you by email or text message to click a link and provide personal or bank information to receive a benefit payment.
How do I contact the CRA from outside Canada? ›
For more information, go to Order alternate formats for persons with disabilities or call 1-800-959-8281. If you are outside Canada and the United States, call 613-940-8495. The CRA only accepts collect calls made through a telephone operator.
Will CRA send me an email? ›
When you sign up for email notifications from the CRA, we will send you an email to confirm your registration. After that, we will send you email notifications when there are changes or updates related to the following topics: Your address. Your direct deposit information.
What number is 1 833 995 2336? ›
Conversation. Hello, please call 1-833-995-2336 for help confirming your identity and regaining access to your My Account profile. You can reach us Monday through Friday from 8 a.m. to 4 p.m. Eastern Time. We hope this helps!
Is Canada Tax Reviews a legitimate company? ›
News release. The Competition Bureau has obtained a court order to advance an ongoing investigation into potentially false or misleading claims made by Canada Tax Reviews when promoting services to Canadians wanting to apply for government benefit programs implemented in response to the COVID-19 pandemic.
Why did I get an email from Canada Revenue Agency? ›
Email notifications from the Canada Revenue Agency (CRA) let you know when important changes are made on your account and when you have mail to view in My Account.
How do I call CRA from USA? ›
1-800-959-2803 (opens up phone application)1-800-959-2803
- 1-800-959-2803 (opens up phone application)1-800-959-2803.
- Outside Canada/U.S. (operates in ET ) 1-613-221-3223 (opens up phone application)1-613-221-3223.
So, to call an 1800 number from overseas, you would dial: xxx (your country's exit code) + yyy (destination country's ISD code) + 1800 + zzz zzzz (destination business's toll-free phone number). For example, if you call from Hong Kong to an 1800 number in the US, you would dial 001-1-1800-123-4567.
How do I call Canada from abroad? ›
Canada has many three-digit area codes that you must dial depending on which province or territory you're trying to reach. Some provinces have many different area codes because they have high populations. For example, if calling a mobile phone from outside Canada, you would dial +61 4 and the 8-digit mobile number.
How do you know if your CRA account was hacked? ›
Check your online CRA accounts regularly for any suspicious activity. This includes unsolicited changes to your address and direct deposit information, or benefit applications made on your behalf.
These credentials may have been compromised by unauthorized third parties, external to the CRA, who may have obtained them through a variety of methods, such as email phishing schemes or third-party data breaches. an email address on file with the CRA.
Is it okay to email a tax return? ›
You may not use email for communications that do not satisfy the criteria described under “When you may use email.” Unless you're involved in an ongoing interaction with an IRS employee and they request a document by email, do not use email to respond to an IRS notice or to submit your original tax return to the IRS.
Should you answer 833 numbers? ›
It's considered a “toll-free” area code, like 800 or 888, used by many legitimate businesses and organizations. However, scammers and fraudsters often spoof calls to make them appear from familiar or trustworthy area codes like 833 to trick people into answering.
What number is 1 800 661 5991? ›
Contact us about a garnishment
If you need more information about an RTP, ERTP or DTP you received, call the CRA contact person at the telephone number listed on the document. If you can't reach anyone at the contact number on the document: For RTP and ERTP call 1-800-675-6184. For DTP call 1-800-661-5991.
Why does 833 keep calling me? ›
If you keep receiving unwanted calls from suspicious 833 numbers, this most likely means that your personal number has been leaked on the web. Illegitimate businesses or scammers may try and make the most of this, reaching out to you in an attempt to trick you into paying them money.
Will revenue ever text you? ›
Smishing (SMS fraud)
'Smishing' is a scam where you are sent an SMS (text message) containing a link to a fraudulent website or phone number. The sender is attempting to collect personal information. Please remember that Revenue will never send unsolicited text messages.
Does CRS send text messages? ›
Your reference number will be visible on all contact we issue including Email, Letter & SMS. Your reference number will be located at the end of every SMS we send you.
What is the number for spam texts in Canada? ›
message to 7726 (SPAM on most keypads). This will alert your cellular provider to open an investigation on the contents of the message. Canadian telecommunications companies take spam messages very seriously. Reporting to 7726 allows them to identify new types of smishing and block.
Does the federal government send text messages? ›
Never share your financial or personal information with anyone who contacts you. Government agencies will never call, text, message you on social media, or email to ask for your Social Security, bank account, or credit card number. In fact, no matter who they say they are, don't give out that information.
Tax time in Canada! That time of year when people begin collecting pay stubs, receipts, loan statements, and various other reports to compile and learn how much they earned and how much they owe the government, or the government owes them. This year, I have a new item on my collection list of info to gather: my 2017 BTC earnings and expenditures!
For 2018 however, I will need to start keeping other receipts, such as those I spent in January proving that I could shop at a thrift store using a BTC-pre-paid physical debit/credit card. I kept one of those receipts, but the other was a grocery purchase and I almost NEVER keep those! So I think that amount will have to be estimated. Fortunately, the price of the item rarely changes. I will need to keep track of these things when I go to do my 2018 incometax.