What is CRA Form T2125?

Form T2125 (Statement of Business or Professional Activities) is a supplementary form self-employed Canadians attach to their T1 personal tax return to report business income, expenses, and calculate net business income.

What business expenses can I claim on T2125?

Common deductible expenses include: advertising, meals and entertainment (50%), office supplies, telephone, internet, vehicle expenses, home office expenses, professional fees, and business insurance. All must be supported by receipts.

How long do I need to keep T2125 receipts?

CRA requires you to keep all business records and receipts for a minimum of 6 years from the end of the tax year they relate to. Digital copies are accepted as long as they are legible and accessible.

What is the deadline to file T2125?

The T2125 is filed as part of your T1 return. For self-employed individuals, the deadline to file is June 15 of the following year, but any taxes owed must be paid by April 30 to avoid interest charges.

← Back to Blog·Tax Guide2026-03-29· 12 min read

How to Fill Out CRA T2125: Complete 2026 Guide

Q: Who needs to file T2125?

Anyone in Canada with self-employment or business income must file T2125. This includes freelancers, contractors, Uber drivers, DoorDash couriers, sole proprietors, and anyone receiving T4A slips.

Form T2125 (Statement of Business or Professional Activities) is how self-employed Canadians report business income and expenses to the CRA. If you file a T4A or earn self-employment income, you need to complete this form. Here's everything you need to know for the 2025 tax year (filed in 2026).

What is Form T2125?

T2125 is a supplementary form attached to your personal tax return (T1). It calculates your net business income (or loss) by subtracting eligible business expenses from your gross business revenue. This net amount flows to Line 13500 (business income) or Line 13700 (professional income) of your T1.

Who Needs to File T2125?

✓Freelancers & contractors

✓Uber / Lyft / delivery drivers

✓Sole proprietors

✓Professionals (doctors, lawyers, etc.)

✓Side-hustle earners

✓Commission salespeople

Key Sections of T2125

Part 1: Business Identification

Your business name, address, fiscal year dates, and business number (if you have one). If you're a sole proprietor using your own name, that's fine — you don't need a registered business name.

Part 2-4: Income

Report all gross business income. This includes amounts on T4A slips, invoiced amounts, and any other business revenue. Don't subtract expenses here — that comes later.

Part 5: Business Expenses (The Important Part)

This is where you list every deductible business expense. Each category has its own line number. Here are the most common ones:

Line	Category	Examples
8521	Advertising	Google Ads, business cards, website
8690	Insurance	Business liability, E&O insurance
8710	Interest & bank charges	Business credit card interest, bank fees
8760	Office expenses	Pens, paper, printer ink, postage
8810	Office supplies	Software subscriptions, cloud storage
8860	Professional fees	Accountant, lawyer, tax software
8871	Management and admin fees	Virtual assistant, admin services
8910	Travel	Flights, hotels for business trips
8945	Telephone & utilities	Phone bill (business %), internet
9281	Motor vehicle expenses	Gas, insurance, maintenance, parking
9945	Business-use-of-home	Rent, utilities, insurance (% used for business)

GST/HST & Input Tax Credits (ITCs)

If your business revenue exceeds $30,000 in four consecutive calendar quarters, you must register for GST/HST. Even if you're under $30K, voluntary registration lets you claim Input Tax Credits (ITCs) — getting back the HST you paid on business purchases.

💡 Pro tip

R2Sheet automatically extracts HST amounts and GST/HST registration numbers from every receipt. This makes ITC claims effortless — no more squinting at faded receipts trying to find the HST amount.

5 Tips for Filing T2125 Correctly

1.Keep all receipts for 6 years

The CRA can audit you up to 6 years back. Digital copies are accepted — but they must be legible and complete.

2.Separate personal and business expenses

Use a separate credit card or bank account for business. It makes tracking (and audits) much easier.

3.Track expenses throughout the year

Don't wait until April. Scan receipts as you get them. 5 minutes a week beats 10 hours in March.

4.Don't forget home office expenses

If you work from home, you can deduct a proportional share of rent, utilities, insurance, and internet.

5.Use motor vehicle log if you drive for business

Track business vs. personal kilometres. The CRA expects a detailed logbook if you claim vehicle expenses.

2026 Filing Deadlines

Self-employed filing deadline

June 15, 2026

For the 2025 tax year

Tax payment deadline

April 30, 2026

Interest accrues after this date

Skip the manual data entry

R2Sheet automatically categorizes every receipt to the correct T2125 line number. Snap receipts throughout the year, and have a tax-ready spreadsheet when you need it.

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