Professional income - T2125P
To enter your professional income, please follow the steps
below:
1. On the "Left-side menu on the Interview tab", select
"Interview setup".
2. On the screen that appears the right, go to the
"Self-employment" group, check the box "Self-employed
business income", also if you paid tax by instalments, go to
the "Tax paid by instalments and tax transfer" and check the
box "Tax paid by instalments and tax transfer" and click
"Next" at the bottom of the page.
3. Return to the "Left-side menu on the Interview tab"
and select the item "Self-employment income", and on the
right-hand side screen choose the option "T2125P - Professional
income".
4. On the page "T2125 - Business identification", enter
the relevant information.
5. In the field for "6-digit code from the North American
industry classification system", enter the code that best
describes your industry. If you do not know the code, click on the
tool tip (the question mark) (?) on the right-hand
side of the box.
6. On the line "Products or services and their respective
percentage (%) in the total income (mandatory for a Quebec
return)", in the field on the right, enter your main service or
product and enter the percentage (%). If you have other products or
services, click on the "plus sign +" icon on the right
to generate another field.
7. On the page "Professional income and expenses", you
must enter your gross professional fees as well as the business
expenses.
8. If you have expenses for work in progress (WIP) that
you have excluded the previous year, you must include them in the
section entitled "Work in progress at the beginning and at the
end of the fiscal period" (at the bottom of the page). You must
do the same if you want to exclude work in progress for the tax
year.
9. For expenses, if your company is registered for GST and HST
(QST), these expenses must be entered before taxes to reflect the
ITRs (Input Tax Refund) and ITCs (Input Tax credit) you
claimed.
10. If you have incurred motor vehicle expenses, complete the
subsection "Motor vehicle expenses" as well as the other
relevant subsections.
11. If you want to claim expenses for work at your home,
complete the subsection "Home office expenses".
12. If you had partners, choose the subsection "Partners"
and if you want to claim capital cost allowance for your office
furniture and equipment, choose subsection "CCA" and select
on this page the classes that apply to your profession.
For more information on professional income, please consult the
following links:
For the CRA:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html
For Revenu Québec:
https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/in-155-v/
The program will generate federal form
T2125 and, if applicable, form TP-80 for
Quebec residents.
The gross and net amounts will be reported by the program on
lines 13699 and 13700 of the
federal return and, for Quebec residents, on lines 15 and 25 of
Quebec Schedule L.
ID: 20200831095426NA.xml
Webpage: KPA320-20200831095426NA.htm
