📝T2125 is a Canadian taxpayer form used to report self-employment or professional services on personal taxes.
💼Sole proprietors fill out T2125 along with their T1 tax return to report self-employment income.
💰T2125 helps calculate taxes earned from side hustles or self-employment activities.
📋T2125 consists of nine sections, including identification, income, expenses, and net income.
💡Understanding gross income and net income is crucial for filling out T2125 accurately.
Who needs to fill out T2125?
—Anyone with self-employment income or income from a small business that is not incorporated.
Do I need a business name to fill out T2125?
—No, you can leave it blank if you don't have a business name.
Can I run multiple businesses under one sole proprietorship?
—Yes, you can run multiple businesses under one sole proprietorship and fill out a separate T2125 for each business.
What expenses can I deduct on T2125?
—You can deduct relevant business expenses such as advertising, business licenses, insurance, and meals.
How can wealthsimple tax help with filling out T2125?
—Wealthsimple tax provides a user-friendly platform and step-by-step walkthrough to help you accurately fill out T2125.
00:00Introduction to filing T2125 for self-employed taxes in Canada.
00:10Explanation of what T2125 is and its purpose in reporting self-employment income on personal taxes.
01:30Overview of the nine sections of T2125, including identification, income, expenses, and net income.
03:20Importance of understanding gross income and net income for accurate T2125 filing.
05:40Clarification on who needs to fill out T2125 and the requirement of a business name.
06:50Information on running multiple businesses under one sole proprietorship.
08:15Examples of deductible business expenses for T2125.
09:30Explanation of how wealthsimple tax can assist with filling out T2125.
