T2125

[Ahna]

I would like to deduct expenses of a course that fall under "I'm self-employed and this course relates to my work". How do I file the T2125 along with my personal claim? 

The training program is not in the list of eligible institutions. 

thanks

[Geo123]

Hello Ahna,

In T2125 Expenses :

[Ahna]

sorry -- where do i find the T2125? some guidance please.  thank you.

 

[Geo123]

Hello Ahna,

Professional income - T2125P
To enter your professional income, please follow the steps below:

1. On the "Left-side menu on the Interview tab", select "Interview setup".

2. On the screen that appears the right, go to the "Self-employment" group, check the box "Self-employed business income", also if you paid tax by instalments, go to the "Tax paid by instalments and tax transfer" and check the box "Tax paid by instalments and tax transfer" and click "Next" at the bottom of the page.

3. Return to the "Left-side menu on the Interview tab" and select the item "Self-employment income", and on the right-hand side screen choose the option "T2125P - Professional income".

4. On the page "T2125 - Business identification", enter the relevant information.

5. In the field for "6-digit code from the North American industry classification system", enter the code that best describes your industry. If you do not know the code, click on the tool tip (the question mark) (?) on the right-hand side of the box.

6. On the line "Products or services and their respective percentage (%) in the total income (mandatory for a Quebec return)", in the field on the right, enter your main service or product and enter the percentage (%). If you have other products or services, click on the "plus sign +" icon on the right to generate another field.

7. On the page "Professional income and expenses", you must enter your gross professional fees as well as the business expenses.

8. If you have expenses for work in progress (WIP) that you have excluded the previous year, you must include them in the section entitled "Work in progress at the beginning and at the end of the fiscal period" (at the bottom of the page). You must do the same if you want to exclude work in progress for the tax year.

9. For expenses, if your company is registered for GST and HST (QST), these expenses must be entered before taxes to reflect the ITRs (Input Tax Refund) and ITCs (Input Tax credit) you claimed.

10. If you have incurred motor vehicle expenses, complete the subsection "Motor vehicle expenses" as well as the other relevant subsections.

11. If you want to claim expenses for work at your home, complete the subsection "Home office expenses".

12. If you had partners, choose the subsection "Partners" and if you want to claim capital cost allowance for your office furniture and equipment, choose subsection "CCA" and select on this page the classes that apply to your profession.

For more information on professional income, please consult the following links:

For the CRA:

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html

For Revenu Québec:

https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/in-155-v/

The program will generate federal form T2125 and, if applicable, form TP-80 for Quebec residents.

The gross and net amounts will be reported by the program on lines 13699 and 13700 of the federal return and, for Quebec residents, on lines 15 and 25 of Quebec Schedule L.