SELF EMPLOYED TAX RETURN CHECKLIST

Written By John Gallagher

To prepare your 2025 return if you are reporting self employment income we will need the following information.

Phase 1: General Information

  • Social Insurance Number (SIN)

  • 2024 Notice of Assessment (NOA): Necessary to check RRSP limits and any carry-forward amounts.

  • Instalment Receipts: If you paid tax instalments throughout 2025, gather the total amount paid.

  • Other Income Slips: T4 (if you also had a job), T5 (investment income), or T4A (commission/grant income).

Phase 2: Business Income (Form T2125)

As a self-employed professional, you must complete Form T2125 (Statement of Business or Professional Activities). We will need the following.

  • Gross Income: Total revenue before expenses (include cash, cheques, and electronic transfers).

  • Sales Tax (GST/HST): If you are a GST/HST registrant, separate the tax collected from your gross revenue.

  • Invoices & Records: A digital or physical log of all services rendered in 2025.

3: Common Business Expenses

You can deduct any reasonable expense incurred to earn business income. Keep all receipts for 6 years.

Operating Expenses

  • Advertising: Digital ads (Google/Social Media), business cards, and website hosting.

  • Professional Fees: Legal fees, accounting software (e.g., QuickBooks, FreshBooks), or tax preparation fees.

  • Office Supplies: Pens, paper, toner, and small stationery items.

  • Insurance: Business liability or professional indemnity insurance.

  • Memberships: Professional dues and subscriptions to trade journals.


Travel & Meals

  • Travel: Airfare, hotel, and taxi costs for business trips.

  • Meals & Entertainment: Typically deductible at 50%. Keep receipts and note who was at the meeting and the business purpose.

Vehicle Expenses (If used for work)

You must keep a mileage log showing total km driven vs. business km.

  • Fuel and oil

  • Repairs and maintenance

  • Insurance and registration fees

  • Lease payments or interest on an auto loan

Phase 4: Business-Use-of-Home

If your home is your principal place of business or you use a dedicated space to meet clients, you can claim a portion of home expenses. Calculate the square footage of your office relative to the total home size.

  • Heat/Electricity/Water

  • Home Insurance

  • Property Taxes

  • Rent (if you do not own the home)

  • Mortgage Interest (not the principal)

  • Internet: Deduct the portion used for business.

Phase 5: Capital Assets (CCA)

Major purchases that last several years (computers, furniture, vehicles) cannot be fully deducted in one year. Instead, you claim Capital Cost Allowance (CCA).

  • Laptops/Computers: (Commonly Class 50)

  • Office Furniture: (Commonly Class 8)

  • Software: (Excluding recurring subscriptions)

If you still have to file your 2025 return and would like us to provide a quote call us now at 905-378-4071

John Gallagher
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T1 Personal Tax Return Checklist 2025