oh my god as a tax professional in Canada this is painful. Creator income has been a solved problem for a long, You use form T2125 as self-employed and make sure you have a sales tax number and it's very straight forward. By letting the CRA calculate what they think he owes, he's missing out on claiming lots of benefits like deductions for your bills, mortgage, etc.
As a tax preparer in Canada I was almost crying for Etho..... hes paying way way more out of pocket than needed and it hurts. By letting the CRA calculate it he gets no write offs, as the original comment here says..... this makees me so beyond sad..... To be completely frank tho, Etho should have it set up where hes paying himself out of his business he set up, or he should incorporate.... this is so so hard to sit and listen to. A little part of me died this day
@@ashleafy1762 Why are you, grown adults, overreacting? He's a grown adult with more than enough funds to pay someone to do his own taxes, yet he has chose not to. It's his own fault.
Idk how it is in Canada, but in the US, you have to be careful about claiming stuff like that. Stuff he uses for personal, non income related use is a bit of a wild area, with several different laws governing how you do it. For instance, you can't really call utilities or power business expenses as a normal business would.
@@_QWERTY__ I prepare taxes in canada, and if he has a dedicated office space he uses for work, he can actually claim a percentage of all household bills as a business expense (based off the square footage of the house/ office etc). As well as that he can also claim the computer, monitor ect, BUT it has to be done a very specific way, where he can only claim a certain percent of the cost each year (capital cost allowance), maintenance for said computer can possibly fall under this as well
It’s been so long since I’ve heard Etho say “Breach, breach, breach!”, not since Team Canada’s playthrough of Ruins of The Mindcrackers some 11 years ago
as a canadian freelancer myself, its actually super easy you just file as self-employed lol. technically, since he is not employed by youtube, he is a contractor or freelancer, and would file any and all money earned doing that as such. this includes sponsors, "gifts", "donations" etc. it would all be considered as freelance income.
would youtube ad revenue count under the same category? it's not like with twitch where he's getting subs and donations, his income is all from youtube
@@PaDiYaFLAMEnah canadian tax filing is really simple if you don't make a business. You do the incorporation to get access to tax cuts and other specific benefits. But all of them are more complicated to file because obviously they have to make sure you qualify. There's no real point in getting the "office as work space" carve out if you own the house and land and you're not paying any mortgage or rent. Because there isn't any tax return they can give you on something you don't have to pay anything for... It would actually become tax fraud if he paid himself a fake rent to take advantage of a tax cut... This man has his mic in a tissue box... And even if he is paying for the space, we kinda know he doesn't live in Toronto from what he's mentioned of his dad's business. At the very least he's far in the suburbs, so it's comparatitively so cheap he won't be saving much money for the extra headaches. That's my personal guess anyways.
@@SquintyGears Maybe it's just an Ontario thing but in my province, once you hit a certain annual income for something like this, you're to apply for a business license. You're also suppose to get a business license if you're not using your legal name. It makes any kind of content creation from youtube to art commissions seem pretty intimidating.
@PaDiYaFLAME Interesting 🤔 i didn't know about the legal name part. But for the amount cut off, etho is probably making regular salary money not millionaire money. I don't know what the cutoff was set to, but he's probably bellow it. It's a different story if he is paying a salary to an editor or something like that.
SmallAnt (canadian streamer) had the same problem, the canadians don't really get why "people just gift money for what i do" to me! They (rightfully) suspect something sus lul
Why is this so affirming to me? As a (very) new adult the fact that my childhood hero also dosent know how to do taxes makes me feel so much better. Also it makes him and all the others feel like real people, yk?
Declaring everything as "other income" (self employed) is totally fine and Etho is likely doing nothing wrong here. It may cause the CRA to audit him more frequently (most people are paid T4 employment income) as there's less of a paper trail doing it this way for the government to cross reference compared to being paid out of a corporation, but it's a totally legit way of claiming income on your taxes if you don't have a business entity or aren't employed by a corporation. This is probably made more difficult by the fact that his father passed away recently and he likely has more RRSP contributions, cash flowing around, etc than usual as a result of inheritance. The other folks mentioned business expenses, but those are also claimable in Canada as an individual against the other income category, so if he wanted he could claim his home office expenses as work ones without setting up a corporation too. If he is messing something up, they'll just audit and charge him the difference with any penalties applied. The CRA doesn't throw average people in jail for tax issues, they just bill you for them.
Yeah this is what I was thinking, although most of it was conjecture. In the US they'll almost certainly just bill you unless you're deliberately hiding income. I failed to sign up for the draft for a year and a half and I got 3 very nice letters about it.
It’s so hilarious to me how Etho has been treated lately in the community. His super strong fanbase, and him not uploading as often as others just makes him such a sought after personality on the server that every time he’s in a clip or on someone’s stream it gets posted with his name front and centre 😂 It doesn’t even stop at the fans anymore so many of the hermits also play off of it now and treat him like he’s the celebrity of the group or something lmao, love it.
If it goes into your personal account, it is income. This might apply to everywhere or everyone, but.... The money you get should go into a company's bank account, with that money you can pay yourself a salary, just enough to get by, the rest should be spend on equipment such as a chair, microphone, computer, internet, etc. as you will not be paying VAT (tax, or whatever), so you kind of get all that for cheaper, than if you had to pay a tax on your income, and then pay VAT on the things you buy.
this clip is funny but i just needed to comment; "including etho" is diabolical work. u definitely delivered on the promise, and everything's working out, but still... good work
@@foresthillwolf7998 only if he called the business 'ua-cam.com/users/ethoslab' and even then im sure it would be years if ever before someone noticed. He can just call the business something generic. You only have to declare a name and address, so ethos would just be one of the 1mill business owners. Etho has probably paid so much more money over the years from not making a business. rip. There are more advantages than just tax rate (which is already a saving).
@@foresthillwolf7998 It is often the case that registering as a business makes staying anonymous easier. It is a classic way for people to hide where they live (the house is owned by an LLC). For Etho, I don't think it makes much of a difference because in either the case of his youtube money going to an LLC or him as an individual, the would be doxxer would have no way of knowing that information as it is just a bank account number in Etho's adsense account.
ive no idea when timewise this occurred in relation to etho's video upload schedule but I genuinely hope he includes this entire interaction in his next vid this rules
I was thinking it is because the 3 were already discussing and then Etho joined in the middle of that. Like you explain to a friend that you were out with friends and then surprisingly "Felix" joined you you know?
Good thing I’m taking a personal finance class this year. Senior year of high school. It’s not a mandatory class right now but next year it will be so I’m glad I decided to take it. Didn’t want to take calculus.
I am a tax preparer, though I haven't done taxes professionally in a long time. I wouldn't even begin to know how to do their taxes lol. I've been sticking to simple taxes for the last few years as more as a hobby than business, and I don't think I want to explore how their taxes are done.
IRS only throws you in prison if they discover you're deliberately trying to hide a large money flow illegally. If you are just making mistakes - they're much more happy if you correct those and keep paying them. They're generally very understanding of common citizens.
Etho, please get an accountant..... even if you dont want to go through claiming as a business, you are losing out on so many tax breaks you can claim as work from home expenses, Oh this makes me so so sad
It should be a buissnes right? Even though Etho hasnt set a buissnes up i still think it should be declaired as such. But i dont know, got no background to say either way
I'm pretty sure I've heard etho talk about this before in a previous episode years in one of his videos. So I think he's serious lol. The Etho girls should know
No way he doesn't have a business, he would've been Doxxed already by people making copyright strikes ssince they require you to give information to solve, it's not just about taxes but privacy too.
First of all, i want to thank you for commenting on this video. I have a question regarding your comment: may i ask why it should not be a clip on UA-cam? Thank you, peace be with you. 🙏
@ Hi man, well I know its very unlikely that authorities would actually see this or even think of prosecuting etho but this clip is basically him incriminating himself
Don't know what it says about me that I enjoyed nearly seven minutes of people talking about taxes in a metaphysical casual meet up.
when you phrase it like that, don't know what it says about any of us
We need friends...
I was just thinking, this is one of the best pieces of hermitcraft content I’ve seen in a while, and I like a lot of hermitcraft stuff lmao
what do you mean metaphysical?
oh my god as a tax professional in Canada this is painful. Creator income has been a solved problem for a long, You use form T2125 as self-employed and make sure you have a sales tax number and it's very straight forward. By letting the CRA calculate what they think he owes, he's missing out on claiming lots of benefits like deductions for your bills, mortgage, etc.
this needs to be higher up.
can anyone get this info to etho?
Hey! You could be Etho's accountant!
@@Daniel_645 Well, I work FOR the tax agency, so definitely not
As a tax preparer in Canada I was almost crying for Etho..... hes paying way way more out of pocket than needed and it hurts. By letting the CRA calculate it he gets no write offs, as the original comment here says..... this makees me so beyond sad..... To be completely frank tho, Etho should have it set up where hes paying himself out of his business he set up, or he should incorporate.... this is so so hard to sit and listen to. A little part of me died this day
@@ashleafy1762 Why are you, grown adults, overreacting? He's a grown adult with more than enough funds to pay someone to do his own taxes, yet he has chose not to. It's his own fault.
Ethos accountant is the government when they tell him he did it wrong. And the fine is the accountants salary. XD
I mean, it kinda is the truth
Etho commits tax fraud is the deep lore we didnt expect to get!
I gotta say, there are other hermits who I felt were less likely to do so.
nah he's not that crazy 😭
@@dustyganteng kleenex box mic
@@dustygantengOoh, he’s got you there.
Shade-e is cannon, it has been for the past 15 years
This should be top comment 😂
canon
Etho goes to jail instead of properly doing taxes. That explains why he disappears in the spring for a bit every year
OMG 😭 ✋🏽
“What? Doesn’t everyone go to jail for a little bit every year?” ~etho, probably
Thank god Canada doesnt actually jail people for tax stuff lol
Remember, any Canadian has the right to say "I'm sorry, your honor" in the court of law and have their case be dismissed by the judge
@@MrWMyselfSO TRUE
As self employed, Etho can claim his desk set up as an office expense…. I wonder how much he could claim for his microphone Kleenex box 😂
Idk how it is in Canada, but in the US, you have to be careful about claiming stuff like that. Stuff he uses for personal, non income related use is a bit of a wild area, with several different laws governing how you do it.
For instance, you can't really call utilities or power business expenses as a normal business would.
@@_QWERTY__ I prepare taxes in canada, and if he has a dedicated office space he uses for work, he can actually claim a percentage of all household bills as a business expense (based off the square footage of the house/ office etc). As well as that he can also claim the computer, monitor ect, BUT it has to be done a very specific way, where he can only claim a certain percent of the cost each year (capital cost allowance), maintenance for said computer can possibly fall under this as well
😂maybe $0.10 maintenance for the Kleenex box !
He could spread the deduction for the kleenex box over several years. I do this with my computers...
It’s been so long since I’ve heard Etho say “Breach, breach, breach!”, not since Team Canada’s playthrough of Ruins of The Mindcrackers some 11 years ago
Helluva callback
Miss those days! Seeing BDouble0, Etho and Doc together is a nostalgic memory! ❤
11 YEARS AGO?!
@@makostrwlkr yea
I really miss them playing CTMs. Why won't anybody make Ruins of the Hermitcrafters...
Oh my god the first photo we ever see of ethos face will be a mugshot
as a canadian freelancer myself, its actually super easy you just file as self-employed lol. technically, since he is not employed by youtube, he is a contractor or freelancer, and would file any and all money earned doing that as such. this includes sponsors, "gifts", "donations" etc. it would all be considered as freelance income.
But don't you have to then get a business license? Those aren't exactly the best for content creators that want to stay anonymous.
would youtube ad revenue count under the same category? it's not like with twitch where he's getting subs and donations, his income is all from youtube
@@PaDiYaFLAMEnah canadian tax filing is really simple if you don't make a business.
You do the incorporation to get access to tax cuts and other specific benefits. But all of them are more complicated to file because obviously they have to make sure you qualify. There's no real point in getting the "office as work space" carve out if you own the house and land and you're not paying any mortgage or rent. Because there isn't any tax return they can give you on something you don't have to pay anything for... It would actually become tax fraud if he paid himself a fake rent to take advantage of a tax cut...
This man has his mic in a tissue box...
And even if he is paying for the space, we kinda know he doesn't live in Toronto from what he's mentioned of his dad's business. At the very least he's far in the suburbs, so it's comparatitively so cheap he won't be saving much money for the extra headaches. That's my personal guess anyways.
@@SquintyGears Maybe it's just an Ontario thing but in my province, once you hit a certain annual income for something like this, you're to apply for a business license. You're also suppose to get a business license if you're not using your legal name. It makes any kind of content creation from youtube to art commissions seem pretty intimidating.
@PaDiYaFLAME Interesting 🤔 i didn't know about the legal name part. But for the amount cut off, etho is probably making regular salary money not millionaire money. I don't know what the cutoff was set to, but he's probably bellow it. It's a different story if he is paying a salary to an editor or something like that.
Learning Etho commits tax fraud is so crazy he scares me more every day
Who knows what hes going to do next. hes dangerous
@@leiaislandsaladant1844
Probably toss more diamonds into lava. Covering his fraudulent activities like that smh
SmallAnt (canadian streamer) had the same problem, the canadians don't really get why "people just gift money for what i do" to me! They (rightfully) suspect something sus lul
Really? They’re such polite people, I’d assume that half of Canadians income is just from people giving them money
@kittenmayhem2399 lul
Why is this so affirming to me? As a (very) new adult the fact that my childhood hero also dosent know how to do taxes makes me feel so much better. Also it makes him and all the others feel like real people, yk?
That's something I've always loved about the hermits, they are often very honest about stuff. Makes them feel a lot more real, I agree
Declaring everything as "other income" (self employed) is totally fine and Etho is likely doing nothing wrong here. It may cause the CRA to audit him more frequently (most people are paid T4 employment income) as there's less of a paper trail doing it this way for the government to cross reference compared to being paid out of a corporation, but it's a totally legit way of claiming income on your taxes if you don't have a business entity or aren't employed by a corporation. This is probably made more difficult by the fact that his father passed away recently and he likely has more RRSP contributions, cash flowing around, etc than usual as a result of inheritance.
The other folks mentioned business expenses, but those are also claimable in Canada as an individual against the other income category, so if he wanted he could claim his home office expenses as work ones without setting up a corporation too.
If he is messing something up, they'll just audit and charge him the difference with any penalties applied. The CRA doesn't throw average people in jail for tax issues, they just bill you for them.
Yeah this is what I was thinking, although most of it was conjecture.
In the US they'll almost certainly just bill you unless you're deliberately hiding income. I failed to sign up for the draft for a year and a half and I got 3 very nice letters about it.
They don't call him *Shady E* For nothing!
@@Moe_Posting_Chad that's what I said :>
Shade shade e
@@Emmetuvisa shady e e
It’s so hilarious to me how Etho has been treated lately in the community. His super strong fanbase, and him not uploading as often as others just makes him such a sought after personality on the server that every time he’s in a clip or on someone’s stream it gets posted with his name front and centre 😂 It doesn’t even stop at the fans anymore so many of the hermits also play off of it now and treat him like he’s the celebrity of the group or something lmao, love it.
He IS a celebrity at this point, we all love Etho
You should see the Etho subreddit. We have a flair called “Etho appearance” hahahahah. Goodness
Sounds like it's worth checking out :D
If it goes into your personal account, it is income.
This might apply to everywhere or everyone, but....
The money you get should go into a company's bank account, with that money you can pay yourself a salary, just enough to get by, the rest should be spend on equipment such as a chair, microphone, computer, internet, etc. as you will not be paying VAT (tax, or whatever), so you kind of get all that for cheaper, than if you had to pay a tax on your income, and then pay VAT on the things you buy.
but what flavor of income
@@mennonis flavor? maybe hazelnut
Maple, obviously. @@gnoot50
This comforts me
In rewatching ethos let’s plays he talks about doing his taxes every tax season and he always seems like he does not know what he is doing
this clip is funny but i just needed to comment;
"including etho" is diabolical work. u definitely delivered on the promise, and everything's working out, but still... good work
They're basically glorified radio hosts.
There must always be a Rat Queen...
its such an etho move to not make a business LMAO
Wouldn't that make it easier for people to identify him? It makes sense.
@@foresthillwolf7998he's also said he doesn't believe in sort of branding himself
@@foresthillwolf7998 only if he called the business 'ua-cam.com/users/ethoslab' and even then im sure it would be years if ever before someone noticed. He can just call the business something generic. You only have to declare a name and address, so ethos would just be one of the 1mill business owners.
Etho has probably paid so much more money over the years from not making a business. rip. There are more advantages than just tax rate (which is already a saving).
Etho's Lab, Ltd.
@@foresthillwolf7998 It is often the case that registering as a business makes staying anonymous easier. It is a classic way for people to hide where they live (the house is owned by an LLC). For Etho, I don't think it makes much of a difference because in either the case of his youtube money going to an LLC or him as an individual, the would be doxxer would have no way of knowing that information as it is just a bank account number in Etho's adsense account.
love the "including etho". Gotta get the etho girls to click (there are hundreds of thousands)
Etho chanting Breach is a blast from the past
I clicked on this thinking the "taxes" in the title was referring to Etho's pet "Taxes" in his Project Ozone LP.
i wrote taxes on a watermelon for halloween cause it was the scariest thing i could think of
(didnt get a pumpkin cause friends sibling has allergy)
ive no idea when timewise this occurred in relation to etho's video upload schedule
but I genuinely hope he includes this entire interaction in his next vid this rules
He is so me instead of doing days worth of paperwork I’d rather pay the charges to get it over with.
I thought this was going to be a reference to his skyblock episode with his companion taxes.
Feels like its been so long since I heard "breach breach breach!!!!" Sigh... time to rewatch team canada for a few hours
"Bone Jovi, Ethos Mom" lmfao
etho just needs to start a maple buisness to wash suspicious youtube money into premium sticky maple leaf
Etho should reach out to blarg from the goons. Not even close to the same circle but blarg is also Canadian and makes bank, with less subs than etho
Punishable by fine is legal for the rich
3:35 did cleo say ethan?
Yes
Yep
Yeah
... not the first time I heard that...
First time was Scar calling Etho, Ethan and Etho joke about Ethan Hunt
okay but what’s with all the “hermits including” etho captions…etho is a hermit 😀
Someone said it
I'd imagine because people will click on it for his name more than the others
I'm a simple man, I see etho I click
I was thinking it is because the 3 were already discussing and then Etho joined in the middle of that. Like you explain to a friend that you were out with friends and then surprisingly "Felix" joined you you know?
Good thing I’m taking a personal finance class this year. Senior year of high school. It’s not a mandatory class right now but next year it will be so I’m glad I decided to take it. Didn’t want to take calculus.
I am a tax preparer, though I haven't done taxes professionally in a long time. I wouldn't even begin to know how to do their taxes lol. I've been sticking to simple taxes for the last few years as more as a hobby than business, and I don't think I want to explore how their taxes are done.
IRS Canada style 😂
IRS only throws you in prison if they discover you're deliberately trying to hide a large money flow illegally.
If you are just making mistakes - they're much more happy if you correct those and keep paying them. They're generally very understanding of common citizens.
Etho should definitely make a irl llc called shady e’s
Etho, please get an accountant..... even if you dont want to go through claiming as a business, you are losing out on so many tax breaks you can claim as work from home expenses, Oh this makes me so so sad
as someone who's self employed. they are not "joking"
Not me thinking about Project Ozone 2 taxes.
This is why i love him
I'm getting to the age where this is riveting to me... 😅
Declaring everything as "other income" looks like a drug dealer who isn't smart enough to launder money.
It should be a buissnes right? Even though Etho hasnt set a buissnes up i still think it should be declaired as such. But i dont know, got no background to say either way
i have no idea about that, i can only laugh when i see that clip
I'm pretty sure I've heard etho talk about this before in a previous episode years in one of his videos. So I think he's serious lol. The Etho girls should know
As a freelancer who never pay her taxes, I don’t know how taxes work either. 😂😂😂
actually very useful information lol
He needs Etho Inc
No way he doesn't have a business, he would've been Doxxed already by people making copyright strikes ssince they require you to give information to solve, it's not just about taxes but privacy too.
Why did you say including Etho like he isn’t already a hermit
Remember kids, don't meet your heroes.
this shouldnt be a clip on yt just saying
First of all, i want to thank you for commenting on this video.
I have a question regarding your comment: may i ask why it should not be a clip on UA-cam?
Thank you, peace be with you. 🙏
@ Hi man, well I know its very unlikely that authorities would actually see this or even think of prosecuting etho but this clip is basically him incriminating himself
@@Bolles04277he isn't doing anything illegal lol
@@moonlit_sky127 how not?
@ he isnt admitting to tax fraud, hes saying he doesn't know if hes doing it right. if he does it wrong they'll tell him lol