Self-employment income

If you’re self-employed, you probably earned income from a business that you operate either as a sole proprietor or with someone else as your partner. It could include income from a business, profession, commission sales, farming, or fishing activities.

The Canada Revenue Agency (CRA) says that business income is income from any activity you carry out for profit or with a reasonable expectation of profit. A business can be:

  • a profession
  • a calling
  • a trade
  • a manufacture
  • an undertaking of any kind and
  • an adventure or concern in the nature of trade

Note: If you’re incorporated (if you have the words Ltd., or Co. after your company name) you have to file a T2: Corporation Income Tax Return. In Québec, you will also need to file a CO-17: Déclaration de revenus des sociétés. Unfortunately, you can’t do this type of return online with H&R Block’s tax software. However, we’d be happy to help you in one of our offices; please use our Office Locator tool to find the office nearest you!

If you’re filing a federal return, you will need to report your self-employment or business income on the following forms:

If you’re filing a Québec return, you will need to also report your self-employment or business income on the following forms:

  • *TP-80-V : Business or Professional Income and Expenses
  • All related and applicable federal forms (T2125, T2121, and/or T2042)

*Note: The TP-80-V is combined with the T2125 in H&R Block’s tax software so you only need to enter your business and professional income and expenses once!

 

Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2016 taxes: 

  1. Under the PREPARE tab, click the LET’S TALK ABOUT 2016 icon.

  2. Click the checkbox labelled I worked for myself and then select the province or territory you were self-employed in from the drop-down menu.

  3. Scroll to the bottom of the page and click Continue.

  4. Click the EMPLOYMENT icon. You’ll find yourself here:

    Employment_EN.jpg

  5. Under the BUSINESS AND SELF-EMPLOYMENT heading, select the self-employment activity that represents your situation. You’ll have to complete all the forms that relate to your particular type of self-employment income.

  6. When you arrive at the page for your self-employment activity, enter your information into the tax software.

 

Where can I learn more?

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