Self-employment income - Form T2125
You must include in your tax return all income earned from
self-employment. This may be business, professional, commission,
farming, or fishing income. To enter this amount in the program,
please follow the steps below:
1. On the "Left-side menu of the Interview tab", select
"Interview setup".
2. On the screen that appears on the right, go to the
"Self-employment" group, check the box "Self-employed
business income", also if you paid tax by instalments. Then go
to the "Tax paid by instalments and tax transfer" group 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",
click on "Self-employment income" and select the option
"T2125 - Business income" on the right-hand side page.
4. On the "Business identification" page, enter the name
of your business on the line "Business name (or your own name,
if the business does not have one ", then enter the other
information in the mandatory fields marked with a red asterisk.
5. On the field for "6-digit code from the North American
Industry Classification System", enter the NAICS code that best
describes your industry. If you do not know the NAICS code, click
on the tool tip (the question mark) (?) on the
right-hand side of the box to access a list of NAICS codes.
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. Subsequently, after identifying your company, a submenu will
appear on the "Left-side menu of the Interview tab" to allow
you to enter the "Income & expenses", "Motor vehicle
expenses", "Home office expenses" and so on.
8. On the next page ''Income, expenses'', on the
line ''Gross sales, commissions or fees'', you must enter a
value, if you have no income, enter $0, 00 as this is a required
field. NOTE: 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.
9. 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.
10. For residents of Quebec, if you wish to pay your
registration fee for Quebec, return to the "Left-side menu on
the Interview tab" and choose the option ''Q438 - Quebec
annual registration fee for the enterprise register''.
We recommend that you read the T4002 guide published by the CRA,
for more information on what qualifies as a business expense.
For more information, please visit the following link:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html
For Quebec residents, we suggest that you consult the
"Business and Professional Income" guide, published by
Revenu Québec. You can visit the following link:
https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/in-155-v/
The program will also generate federal form T2125,
as well as Quebec form TP-80 if applicable.
The gross and net amounts will be reported by the program
on lines 13499 and 13500 of
the federal return and, for Quebec residents,
on lines 12 and 22 of
Quebec Schedule L.
ID: 20211004200336DE.xml
Webpage: KPA320-20211004200336DE.htm
