The tax categories in QuickBooks Self-Employed are mirrored as closely as possible to the categories listed on the Canada Revenue Agency's (CRA) T2125 form to help make completing the form easier.
It's up to you to maintain your tax records, tax filings, and retain receipts for CRA reference. We also strongly encourage you to get assistance from an accountant when completing taxes.
The following categories are available on the Taxes tab in QuickBooks Self-Employed:
- Advertising (line 8521): Cost of promoting and selling your products or services
- Bad debts (line 8590): Money owed to you that you can't collect
- Business income: Money you make from self-employed work
- Business taxes and fees (line 8760): Annual license fees you pay to state or local governments and any taxes you pay to run your business
- Business use of home: Cost of space in your home used for your self-employed work
- Capital cost allowance (line 9936): Cost of furniture, equipment, or property related to your self-employed work that wears out over time
- Capital property allowance: Cost of property that doesn't physically exist but gives you a lasting economic benefit. Examples: goodwill, franchises, concessions and licenses for an unlimited period.
- Credit card payment: Principal portion of payments you make towards a credit card balance (Principal isn't deductible; interest is)
- Freight and delivery (line 9275): Cost of delivery, freight and express you pay in the year of your self-employed work
- Insurance (line 8690): Premiums you pay to insure assets and equipment
- Interest (line 8710): Interest on a business loan for self-employed work (Interest is deductible, principal isn't)
- Legal and professional services (line 8860): Accountant and legal fees you pay for your self-employed work including tax prep
- Maintenance and repairs (line 8960): Cost of repair and upkeep of property or equipment
- Management and admin fees (line 8871): Bank management and administration fees, including payment processing, that you pay for your self-employed work
- Meals and entertainment (line 8523): Meals and entertainment costs for clients directly related to your self-employment work or personal, non-local, meals while travelling
- Motor vehicle expenses (line 9281): Expenses of running a motor vehicle for your self-employed work
- Non-auto fuel (line 9224): Cost of fuel (including gasoline, diesel, and propane), motor oil, and lubricants you use for your self-employed work (Don't include the cost of motor vehicles)
- Office expenses (line 8810): Office supplies and other work space expenses includes stationery and stamps
- Other business expenses: Cost of goods or services that are reasonable for the self-employed work you do, but don't fit in other business expenses
- Owner's deposit: Money from your personal funds that you add to your self-employed business funds
- Owner's withdrawal: Money you pay yourself from your self-employed business funds
- Phone and utilities (line 9220): Cost of telephone and utilities you pay for your self-employed work
- Property taxes (line 9180): Taxes your pay for business property you own
- Rent (line 8910): Rent paid for property used in your self-employed work
- Salaries, wages and benefits (line 9060): Cost of salaries and other benefits you pay to employees
- Supplies (line 8811): Supplies used indirectly during the year to provide goods or services for your self-employed work
- Transfer: Transactions that move money between your accounts
- Travel (line 9200): Travel expenses you pay to earn business and professional income, including public transportation fares, hotel accommodation and meals
For more information, see the CRA's Guide to completing form T2125 or Overview business expenses.