Side business income

Tax Topics
1

A taxpayer has a side business that generates a little bit of extra income for them in addition to their full-time job. The side income is less than $15,000 and has no expenses.

Currently, my thoughts are to input the income into the T2125, however, there are no expenses. Whatever nominal expenses exist the taxpayer doesn’t feel is worth tracking to expense - I see no issue in this.

Is the T2125 the best option or input the income somewhere else?

2

The benefit of using T2125 is that CPP will be assessed on this income and count towards the client’s future CPP pension. This wouldn’t be the case if you claim it as other income on Line 13000.
So, yes, I would claim it as Self-Employment on Line 13500.

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