How do I report income earned on my own on my tax return?

Question

I've been looking for ways, with a desire to be approved for a low interest VISA card, to make extra money, found typing jobs, sold some possessions online, found out I may be able to claim expenses for typing and selling possessions as a self-employment expense or business expense.  What is the different between self-employment expense and business expense? and how do I report income earned on my own on my tax return?

If anyone can answer this question, it would be sincerely appreciated.

L F

Answer 1

As with anything tax related, it's usually best to seek the advice of an expert....which I'm not. But, check out this page: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/menu-eng.html

It sounds like you are a "Sole proprietorship", so you would fill out your self earned income on the T1 General return on line 135 to line 143.

Then to report your business expenses, you would fill out Form T2125, Statement of Business or Professional Activities: See here: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/rprtng/menu-eng.html

I'm sure there's more to it, but that should get you pointed in the right direction.