How to file your taxes when your self-employed and have a job at the same time!

"Do you have a job and have your own business at the same time. How do you file taxes?

As an entrepreneur, your business income / losses are claimed on your T1 Personal Income Tax Return, along with your employment earnings.

For your business, complete form T2124 Statement of Business Activities. You need all your self employed income and expenses. If your end result is a self employed loss, then this will, in effect, reduce your net and taxable income.

Once you complete the form T2124 and discover that you have a profit/loss, then you would also need to submit with your tax return a completed form schedule 8, "CPP Contributions on Self-Employment and Other Earnings" to calculate how much CPP is payable based on your total earned income.

Your employment earnings (assuming you received a T4) are reported on line 101 of page 2 of the T1 return. Self employed earnings / losses transfer to line 135. Losses are a negative and thus reduce your total income.