Freelancing In Canada: Form T2125

If you are self-employed in Canada, meaning you’re a freelance developer or operate a small business where the business itself doesn’t report income as a separate entity and pay you a salary… ie the money coming into the business is yours (even if you keep it in a separate bank account), then you must report your business income along side any other source of income when you file your income taxes. So if you still have a regular job, but you freelance on the side – you might have regular income and self-employed income. This applies even if you haven’t registered a business name and just operate as yourself. This also includes the value of barter (trading services with someone) and also sales made outside of Canada (ie if you have American clients or clients in other countries).

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