5 Side Hustles to Start Now

Here are 5 side hustle ideas to put on your radar, and some of the things to consider that could help keep more of that extra cash in your pocket.

5 side hustle ideas

Maybe you're tapping into a location-based platform to connect you to customers, or perhaps you're a self-starter looking to carve out your own role. Either way, there is likely a side hustle out there for you. There are even YouTube channels devoted to helping you come up with ideas and showing you tips and tricks to get ahead.

Here are a few examples to illustrate the range of opportunities out there.

Ride-sharing

Location-based platforms like Uber and Lyft offer anyone with a vehicle and some extra time the opportunity to turn their car into a potential cash machine. So long as you have a car and a smartphone, there's a low barrier to entry, but factors can affect how much money you can make. Some drivers average about $22 an hour excluding costs, although there is debate about what those costs include. When you factor in fuel, insurance, car depreciation, repairs, and financing—not to mention downtime between rides—many drivers may earn less.

Etsy

If you have a knack for knitting or you're skilled at crafting bespoke jewellery, sites like Etsy provide a platform to market your work to the world from the comfort of your living room. Keep in mind, though, that while some sellers have turned their hobby shops into multi-million-dollar empires, most “storefronts” reportedly make less than $500 a month.

Wedding officiant

If you love seeing a couple start their lives together, why not get a front-row seat by becoming a recognized wedding officiant? To take on this role, you must be a member of a recognized religious organization and have received authorization—in Ontario, for instance, it's from the Office of the Registrar General—to perform marriages. If you perform a ceremony every other weekend, you could easily clear between $6,500 and $15,000 a year.

Tutor

If you're patient and have a strong grasp of a core subject such as math or writing, consider helping others master it too, either online or in person. Sharing your wisdom with young minds could earn you about $24 an hour, although that rate can potentially go up to $100 if you're working with high-school students.

Cottage rental

If you're lucky enough to own a cottage (or camp or cabin, depending on where you live), then you're probably there as much as possible. Even so, your property will sit empty much of the time. Many cottage owners rent out their summer homes to offset the maintenance costs, asking for anywhere from $1,200 to $3,000 a week, depending on the cottage's size and access to amenities like a private dock or beach.

Is your side hustle taxable?

Short answer: Yes. Any money you collect from your side hustle—whether that's chauffeuring people around town or hearing wedding vows—must be reported on your tax statement. Failure to report income of $500 or more on your tax return could result in penalties.

To report this income:

• Submit your income on line 26000 (Taxable income) of your return.
• File the Statement of Business or Professional Activities (Form T2125) or, for a rental cottage, the Statement of Real Estate Rentals (Form T776).

Here's something you might not know: you can offset some of your income taxes with deductions for business expenses. As an entrepreneur, you're able to claim a range of expenses you incurred for your side gig, including gas, fees charged by the digital platform, or costs related to getting licensed to officiate a wedding ceremony. 

The key, though, is keeping diligent records of your income and expenses. Even if you don't consider your side gig to be a true job, the CRA will. Make sure you have a system to save receipts and keep records of your income if you want to avoid an uncomfortable conversation with the CRA.” 

Filing taxes for side hustles and gig work

Just as the internet helped give rise to the gig economy, the convenience of services like TurboTax Self-Employed is helping side hustlers report their income and keep track of their costs. TurboTax makes it easy for self-employed Canadians to prepare accurate tax returns and identify potential deductions that could save them money.

And like any good digital service, if you have a question, you can quickly access expert support for a modest fee. Note that the tax-filing deadline for individuals with self-employment income is June 15, but any taxes owed are due April 30.

What about GST/HST registration?

In addition to income taxes, you may also need to collect sales tax like GST/HST, although if just starting up you may not have to deal with that right out of the gate. Most self-employed Canadians only have to register for GST/HST once they earn $30,000 of self-employment income within a 12-month period, but there are exceptions. Taxi and ride-share drivers, for instance, must register for GST/HST within 30 days of picking up their first passenger.

Still, whether you reach the income threshold or not, there can be some advantages to registering for GST/HST. For instance, registrants can claim input tax credits, which are effectively refunds on GST/HST you paid on a range of expenses, including start-up costs, fuel, and delivery charges.

Save time and frustration

Starting a side hustle to make some cash in your spare time shouldn't leave you with a full-time tax headache. Using tools such as TurboTax Self-Employed can simplify the tax-filing process and help you keep more of what you earned. TurboTax even has integrations with some popular digital platforms, making it easier to import your tax info, helping you keep more of what you earned and giving you more time to enjoy the rewards of your hard work.

Get Started