Self-Employed in Canada? Here’s Your 2024 Tax Season Guide

If you’re a freelancer, small business owner, gig worker, or independent professional in Canada, tax season is in full swing. This guide breaks down deadlines, deductions, GST/HST rules, and CRA resources — so you can stay compliant and maximize your deductions.

📅 Key Tax Deadlines for 2024

• Tax payment due: April 30, 2025
  CRA: Important dates for income tax
• Filing due (self-employed or spouse is self-employed): June 15, 2025
  But since that’s a Sunday, the CRA accepts returns filed on Monday, June 16, 2025.
  CRA: Deadline to file your taxes
  

🧾 What Income to Report as a Self-Employed Person

You must report all forms of self-employment income, including:

• Freelancing, consulting, or gig platform work
• Business, commission, or professional services income
• Farming or fishing income

Use Form T2125 – Statement of Business or Professional Activities to report this.
Download Form T2125
CRA: Guide T4002 – Self-employed business, professional, commission, farming, and fishing income

You’ll report:

• Gross income (lines 13499–14300)
• Net income after deducting eligible business expenses

CRA Line 13499–14300 Explanation

💰 What Can You Deduct?

You can deduct reasonable expenses incurred to earn income, including:

• Home office expenses
• Rent, internet, phone
• Supplies and tools
• Business-use-of-vehicle costs (tracked by mileage)
• Capital Cost Allowance (depreciation on assets like laptops, furniture)
• Advertising and accounting fees

Read: CRA – Business expenses you can deduct
CRA – Home office expenses

Also explore:
Capital Cost Allowance (CCA)

🧾 GST/HST: Do You Need to Register?

If your total taxable revenues (before expenses) exceed $30,000 in a calendar quarter or over four consecutive quarters, you must register for a GST/HST number.

Learn more:
CRA – Register for a GST/HST account

Rideshare drivers, online sellers, and gig workers must register immediately (no $30K exemption):
CRA – Digital economy GST/HST obligations

File GST/HST returns regularly:
CRA – File a GST/HST return

💸 CPP and EI for the Self-Employed

• You must pay both employee and employer portions of CPP contributions on your net self-employed income.
• CRA will calculate your CPP owing when you file.

CRA – Canada Pension Plan (CPP) contributions

• EI is optional for self-employed individuals, but you can register if you want coverage for things like maternity/parental leave.

CRA – EI special benefits for self-employed people

🧮 Instalment Payments

If you owed more than $3,000 in taxes in either of the past two years, the CRA may require you to pay quarterly instalments in 2025:

• March 15
• June 15
• September 15
• December 15

CRA – Instalment payments for individuals

🧾 Accounting Method to Use

• Most people must use accrual accounting, which means you report income when earned (not when received), and expenses when incurred (not paid).
• Some farmers and commission agents can use cash accounting.

CRA – Methods of accounting

🖥 CRA Tools & Portals

Use CRA’s online services to view balances, file returns, and authorize an accountant/bookkeeper:

• My Account (for individuals)
• My Business Account
• CRA online payments – Interac, PAD, My Payment

⚠️ Penalties & Missed Income

Failing to report income? Penalties are steep:

• 10% of the amount unreported (first offense)
• Additional 20% if you’ve missed income in any of the prior three years

CRA – Repeated failure to report income penalty

✅ Summary: What You Should Do Now

Need Help?

At Stiplify Books, we specialize in helping self-employed professionals and small business owners stay compliant while saving on taxes. Whether you’re a creative freelancer, startup founder, or a gig worker, we can help you file smart.

📞 Book a free consultation: https://stiplifybooks.ca
📧 Email us at support@stiplifybooks.ca