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Filing Taxes Online in Canada: A Guide for Self-Employed Individuals

file taxes online Canada

If you’re self-employed, tax season can feel like a daunting time. Unlike salaried workers, you’re responsible for tracking income, claiming expenses, and calculating contributions. The good news? You can now file taxes online in Canada more easily than ever before, with no paperwork, no in-person appointments, and no confusion.

Expert assistance from firms like One Accounting can provide clarity and confidence as you navigate online tax filing. For personalized guidance tailored to your unique business structure, consider reaching out to professionals at One Accounting.

Understanding Self-Employment in Canada

In Canada, you’re considered self-employed if you run your own business, work as a freelancer, or even earn income through a side hustle. The CRA defines self-employment as working for yourself to earn a profit whether part-time or full-time.

This includes freelancers, gig workers, consultants, and sole proprietors. The main thing that separates you from traditional employees is that no one withholds tax for you. That means you’ll need to report your income, calculate your taxes, and make contributions to the Canada Pension Plan (CPP). Employment Insurance (EI) is optional.

Once you’ve confirmed that you fall under the self-employed category, the next step is understanding the key tax forms you’ll need to stay compliant and organized come tax season.

Key Tax Forms You’ll Need

When you file taxes online in Canada, it’s important to know which forms are required based on how you earn income. The essential forms for most self-employed individuals include:
  • T1 General: Your personal income tax return.
  • T2125: Used to report income and expenses from self-employment or freelance work.
  • T4A: Issued by clients to independent contractors or consultants.
  • GST34: If you’re registered for GST/HST, this is the form you’ll use to report and remit tax.
Each of these forms plays a specific role in helping you report your financial activity accurately.
Alright, now that you’ve got the forms down, let’s dive into those all-important tax deadlines and payments.

Tax Deadlines and Payment Obligations

Knowing your deadlines can save you from unnecessary interest charges or penalties. Even though self-employed individuals get a bit more time to file, that doesn’t apply to payments.
The filing deadline for self-employed individuals is June 15, 2025, but since it falls on a Sunday, it moves to June 16. However, if you owe taxes, the payment deadline is April 30, 2025. Paying after this date can result in interest even if you file on time.

Curious about what real people are saying about the process? Let’s take a quick look at a Reddit conversation where self-employed Canadians share their experiences and tips on filing taxes online in Canada.

To stay ahead, try to prepare and submit everything by mid-April. It gives you time to correct any errors and make adjustments if needed.

What Business Expenses Can You Deduct?

Claiming legitimate business expenses is a smart way to reduce your taxable income. If you’re self-employed, the CRA allows you to deduct a wide range of costs as long as they’re reasonable and directly related to your business.

You may be able to deduct:
  • A portion of your home office expenses (rent, internet, utilities)
  • Office supplies such as pens, paper, and printer cartridges
  • Business-use-of-home equipment like laptops or phones
  • Vehicle expenses for business travel (gas, insurance, maintenance)
  • Marketing and advertising costs, including website hosting
  • Professional services, like fees paid to accountants or consultants
  • Business travel expenses such as transportation and accommodation
Always keep receipts, invoices, and records organized. CRA may ask for documentation if you’re audited.

Now that you’re thinking like a pro when it comes to expense deductions, let’s talk about a strategy for calculating and saving for your taxes.

Calculating and Saving for Taxes

You don’t want tax season to catch you off guard. Since there’s no automatic deduction from your income, you’ll need to set aside money throughout the year.

In 2024, the federal tax brackets are as follows:

  • 15% on the first $55,867
  • 20.5% on the next $55,867
  • 26% on the next $111,733
  • 29% on the next $173,205
  • 33% on income over $246,752
In 2024 the federal tax brackets

In addition to these rates, you’re also responsible for CPP contributions. As a self-employed person, you pay both the employer and employee share totaling 11.4%.

A practical strategy is to set aside 25-30% of your income for taxes and CPP. This way, you won’t be scrambling at the last minute to come up with a large payment.

With funds earmarked and ready, let’s get into the nitty-gritty of filing your taxes online in Canada.

Step-by-Step: How to File Taxes Online in Canada

Once you have your paperwork in order, you can move on to filing your taxes. The online process is faster, easier, and more accurate than paper filing.

Here’s how to file taxes online in Canada in just a few steps:
  • Gather all necessary documents – income records, receipts, and tax forms.
  • Choose a CRA-certified software like TurboTax, Wealthsimple Tax, or UFile.
  • Log in to your CRA account to access prior records and confirm details.
  • Fill out your tax return, including Form T2125 for self-employment income.
  • Submit via NETFILE, CRA’s online submission tool.
  • Pay any taxes owed by April 30 or wait for a refund, which usually arrives in two weeks for online filings.
Make sure you double-check for accuracy before submitting especially when it comes to income totals and deductions.
To breeze through next year’s tax season, consider these tips that will save time and stress.

Tips for an Easier Tax Season

To make your tax season go smoothly, there are a few habits you can develop early:

First, keep your records organized year-round. Use a folder (digital or physical) to store receipts, invoices, and statements as you go. This way, you’re not scrambling during tax season.

Second, consider using accounting software like QuickBooks or FreshBooks. These tools can help you track income, log expenses, and generate reports that make tax filing easier. Leveraging the expertise of firms like One Accounting can transform a stressful period into a seamless experience.

Lastly, don’t hesitate to reach out to a professional. At One Accounting, we help clients like you file taxes online in Canada while making sure you’re getting every deduction you’re entitled to. Our personalized support can make a huge difference in your financial outcomes.

Conclusion

Filing taxes as a self-employed Canadian doesn’t have to be complicated. With the right tools, a little planning, and a solid understanding of your responsibilities, you can file taxes online in Canada without stress.

Whether you’re new to freelancing or have years of experience, One Accounting is here to support your success. We specialize in helping self-employed individuals manage taxes, maximize deductions, and stay compliant all with expert advice and easy-to-use systems. Let us take the pressure off this tax season.

Frequently Asked Questions

Yes, newcomers to Canada can still file taxes online in Canada, even in their first year as long as you have a Social Insurance Number (SIN).

 

You’ll need to declare your worldwide income from the date you became a resident. CRA-certified software usually walks you through this step-by-step.

Nope! CRA accepts digital records, so you don’t need to keep paper receipts if you have clear electronic versions. Just make sure they’re legible and stored securely. Still, it’s a good habit to back them up because tech hiccups are real.
Absolutely. If you catch an error after filing, you can request a change using CRA’s “Change My Return” service through your online account. Many tax software platforms also support adjustments. No need to panic everyone slips up sometimes.

Yes, CRA-certified tax software is highly secure. These programs use encryption to protect your data, and most offer multi-factor authentication. Just make sure you’re on a trusted network when you file taxes online in Canada, and steer clear of public Wi-Fi!

Once you submit via NETFILE, you can log into your CRA My Account to see the status of your return. Refunds are usually issued within 8 business days for online submissions, but keep checking in sometimes CRA needs more time if something needs reviewing.

Good news, there are several reliable free options, like Wealthsimple Tax and SimpleTax, especially for self-employed folks with straightforward returns.

 

These still let you file taxes online in Canada without hidden costs. Just be sure the software supports the forms you need.

That’s totally normal! Most online platforms calculate what you owe (or are owed) as you input your numbers. If you’re unsure, you can always pause before final submission, take a look at your breakdown, and set up a payment plan if needed through CRA.

Yes, you’ll get an immediate confirmation number from the software once your return is accepted via NETFILE. CRA also updates your My Account dashboard to reflect that it’s been received. Keep that confirmation number just in case you ever need it.

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