Self Employed and Married
So I am self employed and have been for the past year. I am in the middle of doing my taxes, (gonna try without a accountant).
Question I have is this:
As a self employed individual, I know I have to fill in my T1 with the business income as my income, but what I wanted to know is how do I file for my wife? Do I just do her return seperate?
To report your business income, make sure you use schedule T2125
to calculate your net business income. Also, I hope your are up to speed on how to audit proof
your claim as self employed people are considered higher risk and audited more frequently by CRA for non-compliance.
Check out my chat on the downside to your business if you fail to have good bookkeeping practices
. It explains where small business owners run into trouble ... then you can keep an eye out to make sure you aren't making those common errors.
With regards your wife's tax return. You would report her as usual ... a separate return if she has income ... or in the "information about your spouse" section on the first page of the T1 Jacket if she doesn't have income. You don't do anything differently than in the past. Being self employed for tax purposes just means you have to complete schedule T2125 as I mentioned above.P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.