Self Employed Tax Return Canada – T2125 Step by Step Guide | How to File Income Taxes in Canada

You’ll learn how to file the T2125 Statement of Business and Professional Activities.

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0:00 What is a T2125
4:07 Calculating Taxable Income – T2125
5:35 T2125 Step by Step Guide

T2125 is a Canadian taxpayer's form for reporting self-employment and professional income taxes. Most sole proprietorships fill the T2125 every year, along with the annual T1 personal income tax. You must fill the T2125 with the T1, which covers income from regular employment

To learn how to file taxes in Canada, you need the T2125 form to calculate the tax for your self-employment and professional income, which then gets included as part of the T1 form. The T2125 form is filled by anyone with self-employed income or anyone who generates income from a small business.
If you repaid federal COVID-19 benefits (CERB, CESB, CRB, CRCB, or CRSB) in 2021 that you received in 2020, the amount repaid will be reported in box 201 of your T4A slip or on your T4E slip along with other employment insurance (EI) amounts repaid. First time tax filing Canada can be complicated

The Canadian tax return is due April 30, 2022, and payment is due April 30, 2022. For a self-employed person and their spouse or common-law partner with business expenditures that relate mostly to a tax shelter investment, the return is due April 30, 2022, and payment is due April 30, 2022

If you have a balance owing for 2021, the CRA will charge compound daily interest starting May 1, 2022, on any unpaid amount owing for 2021. This includes any balance owing if the CRA reassesses your return. One of the key items to focus on as you learn how to file income tax return Canada for first time students

As you learn how to file income tax return, you will pay taxes on your income at both the federal level and the provincial/territorial level. In Canada, the tax system is progressive or graduated, meaning the more money you make, the more income taxes you pay

How you figure out how to file tax return online Canada, as a resident of Canada, it is your responsibility to pay taxes on the worldwide income you earned during the year and to file your tax return with the government. Income can take many forms: employment income, investment income, commission income, retirement income

The Home Buyers’ Plan (HBP) allows you to borrow money from your RRSP to buy or build a home for yourself or for a related person with a disability. There are several conditions that apply to the Plan. If you sell capital property, such as stocks on the stock market, for more than you paid, the amount of the difference is considered a capital gain.

Disclaimer: This channel is for education purposes only and opinions expressed in this video are based on personal research and should be treated as such. These are not instructions, suggestions, nor directions as to how to handle your money. The facts and figures presented in this video are up-to-date based on the recording. These may have changed based on when you watch the video, please, always do your own due diligence!
#TaxFiling #TaxSeason #TaxReturn

[nicknamethieves]

Thanks for making these. Its unbelievable how little to no information is available from CRA or provincial authorities. And whatever there is, it's a in a cloud of legal jargon. For a first time "independent contractor" it's a freaking nightmare.

[akeemakintunde]

this video really helped me a lot . i filed my tax by watching this video and believe me you, I managed to save some money . thank you for this video.

[ClaremontClassicGarage]

Thank you Danish. I was intimidated by T2125 at first, but with your video and the Wealthsimple tool it was so easy!

[gurneetsingh]

Great video! My all doubts got cleared related to self employed income. Thanks a ton !

[intersstella]

Thanks for this, man! This was super helpful for me. I was really intimidated by the T2125 and had resolved myself to hiring someone this year to do my taxes. Your video showed me (fortunately even using the same software I used) how to fill it out and what to consider. Thanks for saving me some $$! :)

[RobStockman]

Thank you so much, your overview and the process was amazing. I feel confident to file my taxes now as this is my first year as an independent contractor

[mistrykam]

Great presentation! Explained the T2125 well and the tax filling example was very helpful. Look forward to your next video.

[rrgamingstudio]

Thank you . This video is so helpful . So detailed

[angelsanchezfamily]

Hi My Friend Danish, interesting Video, good Job, Congratulation, God bless you and your Family🙏🏽👏🏽

[CBH-cudt]

Great video, thanks. Question : as an Uber Eats driver, I get confused at the part where you have to report GST/HST collections. Is there any way you can do a video specifically outlining how those taxes get reported ?

Take care Danish 👍

[grantsnowden]

Thank you so much for this video! Super helpful!

[brightboxawesome]

You're amazing bro. thank you for this!

[Adam-psgz]

Thank you, can you consider do one tax video for Youtuber's income please?

[johnparagas]

Very informative bro and great video..subscribed right away and didn't skip any ads while watching the video. This is exactly what I need doing Instacart on the side in few months of 2021. I wonder if the CRA would ask for documents as I didn't keep track of mileage. But I only earned 4000 doing it.

[Terryphotoco]

this video doesn't go over how you report CCA from previous years, this is the first year trying to do my taxes myself and I have CCA from the camera I bought last year, how do I enter that under the CCA section? Would really love to know how to handle this, other than that this video was super helpful

[cirdan_pk]

what about inputting Uber's fees? their summary has a sections breaking down the fees paid to Uber by the driver. For example ~$600 GST/HST collected from riders from the Gross section and then ~$200 GST/HST 'you paid to UBER' . Feels like those fees aren't taken into account

[tainaq]

Hello, do I need to fill out one form for each company delivery? Doordash, Uber eats and skip de dishes, or I can fill out only one form with all the information?

[NadeemPK]

Thanks for this detailed video
If you used the same car for Uber Eats and Doordash, then do we need to use 2 separate T2125 forms and how to split the common car expenses like fuel, insurance, repair etc?
Or can we combine both incomes and car mileage in just one form?

[TOPBOYMTL]

THX YOU BROTHER REALLY HEPL ME LOT ONCE AGIAN THX

[kiratheoddist]

You're Amazing! Thank you. I have a question, where do you report your tips as a self-employed individual?