Self-Employed Tax
As a business owner you file your personal income tax return and pay the same amount of tax as any employed wage earner. Your business income after deductions is considered your annual wage you report it as professional or business income.
About Self-Employed Taxation
If you are self-employed the Canada Revenue Agency allows you to deduct a range of business expenses. These expenses offset your income lowering your profits on paper and reducing your tax burden. Here is a look at the main deductions you can claim. Some expenses include: Advertising fees start-up costs (including interest and fees on money borrowed for your business) and delivery or shipping costs. Other eligible expenses include legal accounting and similar professional fees office supplies and telephone and utility costs.
Child Care Expenses
You can claim child care expenses that were incurred for services including payments made to:
- caregivers providing child care services day nursery schools
- daycare centers
- educational institutions for the part of the fees that relate to child care services.
Business Investment Loss & other Employment Expenses
If you incur business investment loss you can deduct 1/2 of the loss from income. The amount of loss you can deduct from your income is called your allowable business investment loss (ABIL).
Canada Child Tax Benefit
Canada Child Tax Benefit (CCTB) is a tax-free monthly payment made to eligible families to help them with the cost of raising children under 18 years of age. Also learn how you can save on your tax through RESP.