01What you kept1/10

You made $425 tutoring and reselling. You kept less than that.

Adjust the rows. Gross income, expenses, profit — three numbers that mean three different things.

Money in (gross income)

Tutoring — 6 sessions$210
Resold two jackets$95
Logo design for a local team$120

Business expenses

Design software (1 month)$28
Shipping supplies$22
Jackets purchased to resell$60

What you actually kept

$315

74% of what came in

Gross income: $425.00
Expenses: −$110.00

Gross income is everything that came in, before expenses. It is the number the CRA starts from — which is why the receipts on the expense side have to be real and connected to earning that income.

02Is it a business?2/10

"It's just a side thing" is not a tax category

The CRA generally describes business income as income from an activity carried on for profit where the evidence supports that intention. The platform, the size and what you call it matter far less than the facts of what you are doing.

Cash, e-transfers, platform payouts, tips and free products can all be connected to commercial activity.
Employment income and self-employment income are treated differently.
Selling one personal item is not automatically a resale business.

03Sort it3/10

Business activity or personal sale?

Sort each one0 of 5 right

Selling one old jacket you outgrew
Buying sneakers weekly to resell for profit
Tutoring three classmates every week for pay
Being paid in free products to post about them
Giving your old textbook to a friend

04Quick check4/10

Quick check

Answering every check in this lesson completes it automatically.

Knowledge check

You earn money tutoring neighbours for cash. How should you treat that money?

As a gift, because there is no employerAs income you should record and may need to reportAs tax-free because it is cashAs income only if you earn over $100,000

05Predict5/10

Which number does the CRA start from?

You earned $425 and spent $110 on supplies. Which figure is your gross business income?

Pick one — guessing first is the point.

06Real situation6/10

Kai's reselling is growing

Kai has sold 40 pairs of sneakers this year, buying most of them specifically to resell. Payments arrive by e-transfer and through a platform. He has kept no records.

07Check again7/10

Check your understanding

Answering every check in this lesson completes it automatically.

Knowledge check

How does self-employed income differ from employment income for a teenager?

There is no difference at allNothing is withheld for you, so you are responsible for your own records and any amounts owingSelf-employed income is never taxableEmployers issue a T4 for self-employed work

08Try it8/10

Log your own hustle

Record income and expenses as they happen, and export a CSV when it is time to file or show a parent.

Open Side Hustle Tracker

09Last check9/10

One more

Answering every check in this lesson completes it automatically.

Knowledge check

Which record is most useful to keep for a small side hustle?

A dated log of every payment received and every related expenseA rough memory of a busy monthOnly your best monthScreenshots of competitor prices

10Takeaway10/10

The one thing to remember

What you call it does not decide anything. What you actually do does.

Your progress

0 of 3 checks answered

Up next · Lesson 14 of 15Track Income, Expenses and GST/HST

Sources

Last reviewed July 23, 2026

Educational content only. ProfitED provides general educational information and does not provide personalized tax, legal or financial advice. Rules may change and may differ based on your province, territory and circumstances. Verify important decisions with the Canada Revenue Agency, another appropriate government source or a qualified professional.