Your T2125 package on Tax time lists every line with CRA's line number. Every NETFILE-certified tax software uses the same line numbers, so you copy by number, not by name.
Before you start
- Open your T2125 package for the year and keep it beside your tax software. Fix any receipts it flags first.
- Have your GST/HST number handy if you're registered.
- If you have a job too, enter your T4 slip as usual. The T2125 is separate. See A job and a side business.
Wealthsimple Tax
- Add the section Business, Professional, and Commission Income to your return.
- Fill in the identification part: your business name, the industry code (the NAICS code that best fits your work), and whether the business has its own address. If you work from home or at clients' places, it usually doesn't.
- In the income and expenses part, enter your gross sales (line 3A) and, if you're registered, the GST/HST included in it (line 3B). Both are on your package.
- Go down the expense lines (8521 advertising, 8810 office expenses, 9200 travel and so on) and copy each amount from your package.
- Home office and vehicle have their own parts. Copy the business-use share and the totals from your package's home office and vehicle sections.
If a T4A slip shows business income, Wealthsimple Tax asks which T2125 it belongs to. Pick your business. Don't add it a second time: it is already in your sales.
TurboTax
Search for T2125 or "self-employment income" and add it. The steps are the same: identification, then income, then expenses by line number, then home office and vehicle. TurboTax may ask the same questions in a different order.
UFile
Add Self-employment income (business) from the interview, then fill in the T2125 the same way.
Things the software asks that your package doesn't
- Fiscal period. For most sole proprietors it is January 1 to December 31.
- Industry code (NAICS). Pick the closest description. It doesn't change your tax.
- Partnership. Answer no unless you run the business with a partner.
- Capital cost allowance (CCA). If you bought equipment or a vehicle, the software has a CCA section. Your package lists the equipment you bought in the year to help, and line 9936 is the CCA you typed in. Use the same figures in both places.
- CPP on self-employment. The software works this out from your net income. You pay both the employee and employer share. That's why your bill is higher than you might expect.
After you file
Your tax for the year is due on April 30, even though self-employed people have until June 15 to file. Paying late costs interest. See CRA dates for sole proprietors.
Mark the year final on your T2125 package, so later changes don't quietly change numbers you already filed.
This is general information to help you keep your own records. It is not tax or legal advice.
Based on: CRA: Form T2125 and CRA: NETFILE
Last checked: 2026-10-25