DIY Taxes for Small Business Owners in Canada

Being your own boss has many rewards. It also has some responsibilities. One of those responsibilities is to file taxes as a business owner if you are self-employed. Don’t worry. To help you file taxes correctly, we have mentioned everything you need to know about DIY taxes for small business owners in Canada over here.

Who is a Business Owner?

Being a business owner has nothing to do with having a storefront or employees. You are a small business owner if you operate a business where you are the business. Hence, small business owners are freelancers, consultants, conteact writers, and even ride-share drivers.

Components of a Self-Employment Tax Return

A self-employment tax return has these three components.

1.       Identification

It includes all available details about your business like business name and address, industry code for your business, information on co-owners or partners, and fiscal period for your business.

2.       Business Income

In a year, the income you have earned performing a service or selling products will be counted. Other information like subcontractor payments can also be added here. This section is only for gross income.

3.       Business Expenses

If you have spent money to promote yourself or your business or invested in equipment or supplies, meals, etc., those are your business expenses. There are countless of them. Count each of them, and then know how much money you are actually making.

Tools to Help with DIY Taxes for Small Business Owners in Canada

If you are looking for help to make DIY taxes for small business owners in Canada easy, you should consider the following tools.

1.       TurboTax

This tool is ideal for complicated tax returns. You can file the tax for free or pay $35 for personal returns. The costs can be anywhere from $45 to $110 for self-employed returns. It is an ideal tool for most filers, ranging from students to freelancers and even people with rental properties. It can also be used for family and business tax. You can also hire professionals to file taxes on your behalf for a fee.

2.       HRBlock

Well-suited for Canadians who might need assistance with their taxes, this tool is free to $45 for personal returns and offers expert help starting at just $30. You can also ask a remote expert to file tax for less than $100. It also offers two more advanced packages, The Assistance package and the ultimate Protection plan.

3.       Wealthsimple Tax

This tool is good for people seeking completely free filing. It works on a donation system. In the end,  you get an option to pay what you want, and you can choose to pay nothing.

4.       UFile

This one is best for taxpayers on a budget, and the pricing starts at free to $19.99 for personal returns and just $29.95 for UFile Premium. Students, people with simple returns, and first-time filers find this tool suitable.

5.       StudioTax

You can use this tool for offline filing. The pricing ranges from free to $15. Hundreds of thousands of Canadians trust this tool every year. It makes things simpler as you can download the program on your computer or mobile device and work offline. Then you can print off the return and choose not to file electronically.

If you want to know about tools approved by the Canadian government, check this link.




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