Frequently Asked Questions

The key is calculating your tax rate based on your actual income. For self-employed folks in Alberta, you're typically looking at around 20-30% of net income (after expenses) depending on your income level and whether you have other income sources. Start by setting aside a percentage each month, then refine it quarterly once you see your year-to-date numbers.

Yes, absolutely. Tracking by source (Upwork, local clients, DoorDash, etc.) gives you a clear picture of where your money's actually coming from and which gigs are most profitable after expenses. It also makes tax reporting cleaner—you'll know exactly what to report to CRA.

You can deduct legitimate business expenses: home office (if you have a dedicated space), equipment and supplies, vehicle mileage (keep records), software subscriptions, internet portion, phone bill, professional development, and client-related costs. Keep receipts and document what's actually business-related. If you're unsure about an expense, it's worth asking—some deductions have specific CRA rules.

Monthly is the sweet spot. It's frequent enough to catch patterns in slow weeks or big months, but not so constant that you're stressing daily. A monthly review takes 15-30 minutes and helps you spot if you need to adjust your tax set-aside, cut expenses, or chase outstanding invoices.

Only if CRA tells you to. If you owed more than $3,000 in federal tax in either of the previous two years, they'll require quarterly instalments. If you're just starting out or your income is below that threshold, you typically pay everything at year-end when you file your tax return. Check your CRA account or call them to confirm your status.

It depends on your baseline and expenses. A good month typically covers your essential living costs plus your tax set-aside. A bad month is when income drops below your expenses or you can't fund your tax savings. Tracking this over 6-12 months shows you your actual range, so you can plan a buffer and avoid stress when slower periods hit.