🎣 Are You a Fishing Worker Surprised by a Big Tax Bill? Here's What You Need to Know!

If you worked hard out on the water and now you're facing an unexpected tax bill — you're not alone.
Many fishing workers get caught off guard when it's time to file taxes because fishing income is treated differently under CRA rules.
But don't worry — you have options to reduce your tax and keep more of your hard-earned money!

Let's break it down simply:

🎣 Why CRA Treats Many Fishing Workers as Self-Employed (T2121)

✅ Even if you work for a boat owner, in the fishing industry CRA has a special rule:
If you are paid a "share" of the catch (like a percentage of fish sold) or a crew share,
then CRA says you are self-employed — NOT an employee.

📜 In Tax Language:

• If you are paid salary or hourly → Employer gives T4 → Box 14 = Regular employment income

• If you are paid crew share (based on fish sales) → Fishing firm gives T4 → Box 24 = Fishing Income

Then:

• You must report fishing income using T2121 (Fishing Business form)

• CRA expects you to pay CPP yourself and tax as self-employed

✅ Important:

• Box 24 = Fishing income (self-employed)

• Box 14 = Employee salary/wage (regular worker)

🚨 Why Surprise Tax Bill?

Because:

• No income tax was deducted during the year

• No CPP was deducted

Now CRA wants you to pay both when you file!

This is very common — many fishing workers are surprised every year!

💡 What Can the Taxpayer Do to Reduce Taxes?

✅ Claim expenses related to fishing! (even if working on someone else's boat)

Here’s what you can claim:

Expense Examples Work clothing Boots, rain gear, gloves, waterproof jackets Meals If you paid meals during fishing Travel If you traveled to fishing location Union dues/crew fees If paid Small tools Knives, gloves, fishing tools Other expenses Phone costs if used for fishing business

➡️ These expenses reduce your net income → you pay less tax and pay less CPP.

✅ Plus, you still get the basic personal amount credit (~$15,000 tax-free in 2024)!

✅ If your income is low, you could qualify for GST Credit, Climate Action Incentive, and other refunds.

🛟 Example:

• Gross fishing income: $27,920

• Expenses (clothing, meals, etc.): $7,000

• Net fishing income: $20,920

➡️ Then your CPP and Tax are much lower!

✍️ Simple Strategy for the Taxpayer:

1. List and calculate all work-related expenses

2. Fill T2121 correctly with those expenses

3. Report net income (not gross) on your tax return

4. Use personal credits to lower your tax bill

5. Maybe request CRA to allow instalments for next year (so no surprise again!)

📞 Need Help Filing Your Fishing Income Properly?

Don’t let tax season sink your earnings!
TiKi Tax specializes in fishing income and can help you maximize your deductions, file correctly, and avoid big tax bills.

👉 Contact TiKi Tax today at info@tikitax.net or visit www.tikitax.net —236.788.7799
Let's make sure you keep more of what you catch! 🐟