Taxable Income Self Employed
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Question: Have a job and am self employed. How do I file my taxes? Do I need to file two separate returns?
If I was self employed (ex. realtor) and had expenses for the year. Could I use my expenses to reduce my Taxable Income from my regular full-time job? Do the two different sources of incomes need to be fully separated? Any tips on filing taxes would be much appreciated.
Thank you.
Curious YAnswer: Hello,
As a self employed proprietor your business income / losses are claimed on your T1 Personal Income Tax Return, along with your employment earnings.
For your business complete form T2124 Statement of Business Activities. You need all your self employed income and expenses. If your end result is a self employed loss, then this will in effect reduce your net and taxable income.
Your employment earnings (assuming you received a T4) are reported on line 101 of page 2 of the T1 return. Self employed earnings / losses transfer to line 135. Losses are a negative and thus reduce your total income.
Best of luck!
Advice for filing taxes by April 18
You’re probably feeling tax-season anxiety. Maybe it’s a small, nagging doubt that you’ve missed something; maybe it’s a crippling fear of fiscal missteps that renders you unable to do basic math. Take a deep breath and push the anxiety aside.
How to fill in your tax return
