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Electing not to pay CPP on self-employed tips


#1

The taxpayer for the return that we are working on is electing not to pay CPP on her self-employed tips.

I’m trying to find where to enter an amount for self-employed tips such that they do not increase the amount of CPP that this tax payer has to claim. Any hints?

TIA,
Patrick


#2

Where did you enter the tips in the T1?

Did you enter it on the last line of the T4 where the tips were earned?

Edit, sorry I did not see the “self employed” portion of your original post. I have not run into this issue before; however, I suspect that since the tax payer is self employed, CRA may not allow such handling due to the way income is calculated on the business schedule.


#3

Self employed tips are self employment income. dead stop. They are also subject to GST, just like any other self employment income. And subject to CPP as any other self employed income.