Tips and gratuities are considered “other employment income.”

Examples include receiving tips from being a server at a restaurant, or gratuities to an esthetician who gives manicures. This income is sometimes shown on your T4, but this is often not the case.

If tips are not listed on your T4, you must still report the income on your tax return.

You must maintain a record of your other income for the year, and add the total to line 104 of your tax return. For example, a massage therapist received a total of $600 in tips for the year. The amount $600 would be entered on line 104 of his tax return, as it was not reported on his T4.

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