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Self-Employed & Small Business Tax Filing: What You Need to Know for This Year

Updated: 5 days ago

If you’re self-employed, operate a small business, or earn income outside traditional employment, your tax filing requirements differ from regular T1 personal returns. Understanding what to track, which forms apply, and the documents you need will help you stay compliant and avoid CRA surprises.


Here’s a clear breakdown to help you prepare for a smooth filing season.


Eye-level view of a calculator and tax documents on a desk

Who Is Considered Self-Employed?


You are considered self-employed if you earn income from:

  • Freelancing or contracting

  • Running a sole proprietorship

  • Operating a small business (online or physical)

  • Gig economy work (Uber, DoorDash, Fiverr, Etsy, etc.)

  • Professional services (consultants, trades, coaches, etc.)

  • Rental operations (in some cases)

Self-employment income is reported on your T1 General Return, but requires additional forms and detailed expense tracking.


Key Filing Deadlines for Self-Employed Individuals


✔ June 15 2026 — Filing deadline for self-employed individuals and their spouse/common-law partner.

✔ April 30 2026 — Deadline to pay any balance owing (interest begins after April 30, even if you file in June).

✔ March 1 2026 — Deadline for RRSP contributions that reduce last year’s tax.

Filing early is highly recommended if you expect to owe tax — it gives you time to plan and avoid interest.

✔ December 31 2025 — FHSA (First Home Savings Account) contributions must be made by December 31 to be deducted for that tax year. Unlike RRSPs, FHSA contributions do not have a 60-day grace period into the new year.


Required Forms for Self-Employed Filings


Self-employed taxpayers typically complete one or more of the following:

  • T2125 — Statement of Business or Professional Activities

  • T776 — Statement of Real Estate Rentals (if applicable)

  • GST/HST Return (RC159 or online My Business Account)

  • T4A/T5018 slips (if received for contract work)

  • Payroll remittance records (for businesses with employees)

  • T1135 — Foreign property reporting (if applicable)


Documents & Records You May Need


Below is a comprehensive list that applies to freelancers, sole proprietors, contractors, and small business owners. Not every item will apply to your business type — but keeping what’s relevant ensures accuracy and maximizes deductions. While Haddad Financials offers full bookkeeping and accounting services, clients may also choose to provide their own organized summary of income and expenses (such as an Excel spreadsheet or year-end summary). In these cases, we will prepare the T1 return at a discounted service fee, provided the records are complete and ready for filing.


1. Income Documentation

  • Invoices issued

  • Sales summaries (POS, Shopify, Square, Stripe, PayPal, bank deposits)

  • T4A slips (contract work)

  • T5018 slips (construction industry)

  • Online platform income reports (Uber, DoorDash, Airbnb, Etsy, Amazon, etc.)

  • Rental income statements (if applicable)

  • Foreign income statements

2. Business Expense Receipts

You can deduct reasonable expenses incurred to earn business income, including:

Home Office Expenses

  • Utility bills (hydro, heat, water)

  • Internet

  • Property tax

  • Rent or mortgage interest

  • Home insurance

  • Maintenance and repairs

  • Workspace measurements or floor plan

Vehicle Expenses

  • Fuel

  • Maintenance & repairs

  • Insurance

  • Lease payments or CCA (depreciation)

  • Parking & tolls

  • Mileage log (mandatory)

Business Operating Expenses

  • Phone & internet (business portion)

  • Advertising & marketing

  • Office supplies

  • Software subscriptions

  • Professional fees (legal, accounting, bookkeeping)

  • Bank charges & merchant fees

  • Meals & entertainment (50% allowed when business-related)

  • Travel expenses (hotels, flights, mileage)

Asset Purchases & Depreciation

  • Computers, laptops, tablets

  • Office furniture

  • Tools and equipment

  • Business vehicles

  • Capital improvements

These may be deducted gradually through Capital Cost Allowance (CCA).

3. Financial Statements & Records

  • Income & expense summaries

  • Cash-flow statements or bookkeeping records

  • Loan and interest statements

  • Inventory purchases and count

  • GST/HST collected & paid

  • Payroll records (if you have employees)

4. Personal Information for Tax Credits

Even as a business owner, you may still claim:

  • RRSP contributions

  • Childcare expenses

  • Medical expenses

  • Charitable donations

  • Tuition/student loan interest

  • Disability credits

  • Spousal or dependent claims

5. GST/HST Requirements

You must register for a GST/HST number if:

  • Your business earns $30,000 or more in any 12-month period

  • Or you choose to register voluntarily

Documents you may need:

  • GST/HST return summaries

  • Input tax credit receipts (ITCs)

  • CRA account statements

  • GST/HST collected from clients


Why Proper Documentation Matters


Accurate record-keeping ensures:

  • Maximum allowable expense deductions

  • Lower taxable income

  • Compliance with CRA requirements

  • Reduced audit risk

  • Faster and cleaner filing

Haddad Financials provides full support for freelancers, contractors, and small business owners — from organizing your documents to preparing complete T2125/T776 schedules and GST/HST filings.


Need Help Filing Your Self-Employed or Business Taxes?


Whether you’re a new entrepreneur or an experienced small business owner, we’re here to make filing simple.


Click “Contact Us” to schedule a consultation.


 
 
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