You reported $38,000 in gig income on your T2125. Uber’s records say $41,200. The CRA sees both numbers. That gap is going to get you a letter.
This happens more often than you’d think, and it’s rarely fraud. It’s usually a misunderstanding of what the platform reports versus what you actually received. But the CRA doesn’t care about “usually” — they care about the number on your return matching the number on theirs.
Why your numbers don’t match
Starting in 2024, Canadian digital platforms are required to report seller and driver earnings directly to the CRA under new platform reporting rules. That means Uber, DoorDash, Airbnb, Etsy, and others are sending your gross earnings to the CRA every year.
The problem: the number the platform reports and the number you think you earned are often two different things. Not because anyone is lying, but because “earnings” means different things depending on who’s counting.
Common causes of the mismatch
Gross vs. net confusion. Platforms report your gross earnings — the total before their fees, commissions, and service charges. If Uber says you earned $41,200 but took $3,200 in service fees, you actually received $38,000. You might have filed $38,000, but the CRA is looking at $41,200. Both numbers are correct, but they need to reconcile on your T2125 (report the gross, then deduct the fees as expenses).
Tips and bonuses you didn’t track. Cash tips don’t show up on platform statements. Promotional bonuses and incentive payments sometimes appear in a different section of your driver dashboard than regular earnings. If you missed $1,500 in bonuses spread across 12 months, that’s a $1,500 gap.
Refunds and chargebacks. When a customer disputes a delivery or cancels a ride, the platform claws back your earnings. Some platforms deduct these from future payouts without clearly separating them in your annual summary. You end up with a lower bank deposit than what the platform initially reported.
Multi-platform income. If you drive for Uber, deliver for DoorDash, and do the occasional Instacart run, each platform reports separately. Miss one platform’s T4A or annual summary and your total is off. The CRA adds them all up.
Calendar year timing. You completed a delivery on December 30th. The platform processed payment on January 3rd. Which tax year does it belong to? Platforms typically report based on when the work was performed, but you might have tracked it based on when the money hit your bank account. That December/January overlap causes mismatches every single year.
How the CRA flags discrepancies
The CRA runs automated matching programs that compare the income reported by platforms against what you filed on your T1 return. If the numbers don’t line up, one of three things happens:
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Automated reassessment. The CRA adjusts your return to match the platform’s reported amount and sends you a Notice of Reassessment with additional tax owing, plus interest from the original filing deadline.
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Review letter. You get a letter asking you to explain the difference and provide supporting documents — bank statements, platform summaries, expense receipts. You typically get 30 days to respond.
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Audit. In more serious cases or repeat mismatches, the CRA opens a full review of your business income and expenses. This can go back up to three years (or six if they suspect gross negligence).
The penalty for unreported income is 10% of the amount you failed to report, and it doubles to 20% if it happens a second time within three years. That’s on top of the tax you already owe plus interest.
Step-by-step: reconcile your platform statements
Fix the mismatch before it becomes a problem.
1. Download every platform summary. Log into each platform you worked on during the tax year. Download your annual tax summary — not just the payment history. Look for a section called “Tax Summary,” “Annual Statement,” or “Tax Documents.” For Uber, it’s under the Tax Information tab. DoorDash sends a tax summary email in February.
2. Compare gross earnings to what you reported. Line up the platform’s gross number against what you entered on Line 8299 (gross sales) of your T2125. If you reported net instead of gross, you’ve found your problem.
3. Account for platform fees separately. Platform commissions, service fees, and booking fees should be listed as business expenses on your T2125 — not subtracted from revenue before reporting. This is the single most common mistake. Report $41,200 gross, then deduct $3,200 in fees. Your net is still $38,000, but the CRA can see how you got there.
4. Check for missing income sources. Pull your bank statements and look for deposits from platforms you might have forgotten. That one weekend you tried Instacart in July? It still counts. Even $200 matters when the CRA is comparing totals.
5. Verify the reporting period. Confirm whether each platform reports on a calendar year basis (January 1 - December 31) or uses a different cutoff. Match any December/January overlap against your own records.
6. Document everything. Keep a reconciliation spreadsheet showing: platform name, gross reported by platform, fees deducted, net received, and amount reported on your return. If the CRA asks questions, this is what saves you.
Already filed with a mismatch? The T1-ADJ process
If you’ve already submitted your return and realized the numbers are off, don’t wait for the CRA to find it. Fix it yourself.
Option 1: ReFILE through your tax software. If you filed electronically and it’s been at least 72 hours since your Notice of Assessment, most certified tax software lets you submit a T1 Adjustment Request (T1-ADJ) electronically. This is the fastest route.
Option 2: My Account. Log into CRA My Account, select “Change my return,” and adjust the relevant lines on your T2125.
Option 3: Mail a T1-ADJ form. Download Form T1-ADJ, fill it out with the corrected amounts, and mail it to your tax centre. This takes 8-12 weeks to process.
Voluntary corrections before the CRA contacts you generally avoid the 10% penalty. You’ll still owe the extra tax plus interest from the original due date, but you won’t get hit with the penalty on top.
Prevention: track as you go
The mismatch problem is almost always a year-end scramble problem. When you’re trying to reconstruct 12 months of multi-platform income in March, things get missed.
Track weekly instead. Every Sunday, spend 10 minutes logging your earnings from each platform. Compare the platform dashboard to your bank deposits. Note any refunds, chargebacks, or bonuses. By the time tax season hits, your numbers are already reconciled.
Separate your business banking. If gig income lands in the same account as your paycheck, birthday money, and e-transfers from friends, good luck sorting it out in April. A dedicated business account makes reconciliation straightforward.
Accountly connects to your income sources and tracks earnings as they come in. When your platform summary arrives in February, you can compare it against 12 months of records you’ve already verified — no scramble, no surprises, and no CRA letters.
FAQ
Why does my Uber tax summary show more income than I actually received?
Uber reports your gross earnings before deducting their service fee (typically 25%). If Uber says you earned $40,000, you likely received around $30,000 after fees. You should report the full $40,000 as gross income on your T2125 and deduct the service fees as a business expense. Both numbers are correct — they just go on different lines. See our ride-share tax guide for a full breakdown.
Can the CRA see my platform earnings even if I don’t get a T4A?
Yes. Under Canada’s digital platform reporting rules (effective 2024), platforms like Uber, DoorDash, Airbnb, and Etsy report your earnings directly to the CRA regardless of whether they issue you a T4A slip. The CRA matches this data against your filed return. Not receiving a T4A does not mean the income is unreported on their end.
What happens if the CRA finds unreported platform income?
The CRA will reassess your return and add the missing income. You’ll owe the additional tax, interest from the original filing deadline (currently running around 8-10% annually), and a penalty of 10% of the unreported amount. If it happens twice within three years, the penalty jumps to 20%. Voluntarily correcting before the CRA contacts you typically avoids the penalty portion.
Do I report platform income based on when I earned it or when I got paid?
Most self-employed individuals in Canada use the accrual method, which means you report income when the work was performed — not when the payment hit your bank account. A ride completed on December 29th counts as December income even if DoorDash pays you on January 5th. This December/January timing difference is one of the most common causes of mismatches. Check our freelance taxes guide for more on reporting methods.
How do I fix a tax return I already filed with the wrong platform income?
Submit a T1 Adjustment Request. The fastest way is through your certified tax software’s ReFILE feature (available 72 hours after your Notice of Assessment). You can also use CRA My Account online or mail in Form T1-ADJ. Processing takes 2 weeks for electronic submissions and 8-12 weeks by mail. Filing a voluntary correction before the CRA contacts you avoids the 10% penalty.
Do I need to register for GST/HST if I earn platform income?
If your total revenue from all self-employment sources (including all gig platforms combined) exceeds $30,000 in any 12-month period, you must register for a GST/HST account and start charging and remitting GST/HST. This threshold looks at gross revenue, not net profit. Read our full GST/HST registration guide for details on the Quick Method and filing deadlines.
The information in this guide is for general informational purposes only and is not intended as accounting, tax, business, or legal advice. Accountly does not provide professional services or act as your accountant, tax advisor, or lawyer. No client relationship is created by your use of this material. Always seek advice from qualified professionals who understand your particular circumstances before acting on any information contained herein.
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