Canadian Tax Deduction Finder
Discover all the tax deductions you're eligible for as a Canadian freelancer or self-employed individual. Our smart questionnaire helps you identify potential savings.
What type of self-employed work do you do?
What are Tax Deductions for Canadian Freelancers?
Tax deductions are legitimate business expenses that reduce your taxable income, ultimately lowering the amount of tax you owe. As a Canadian freelancer or self-employed individual, you can deduct reasonable expenses incurred to earn business income. These deductions are claimed on your T2125 Statement of Business or Professional Activities form.
Top Tax Deductions for Canadian Freelancers
How to Claim Your Tax Deductions
To claim tax deductions, you must maintain detailed records of all business expenses including receipts, invoices, and bank statements. The expense must be reasonable and directly related to earning business income. You'll report these deductions on your T2125 form when filing your personal tax return.
Keep in mind that some expenses have specific rules - meals and entertainment are only 50% deductible, vehicle expenses require detailed mileage logs, and home office deductions must be calculated based on the percentage of your home used exclusively for business.