Maximize Your Deductions: Common Self employment Expenses

Whether you’re an artist, freelancer, consultant, contractor, or service provider, many of the expenses you incur as part of running your business can be claimed on your taxes. Tracking and documenting all your business expenses throughout the year is critical to maximizing your deductions and minimizing your tax liability.

As a self-employed worker, regardless of your industry or field, you may be overlooking business expenses that can be deducted to reduce your taxable income. If you’re not sure whether an expense qualifies or how to claim it, don't hesitate to reach out. We can work together to ensure you're taking full advantage of all the tax benefits available to you.

Here’s a list of potential expenses you can claim on your T2125 (Canada) and TP-80 (Quebec) tax filings, whether you're a consultant, tradesperson, artist, or independent contractor.

Registering for your Quebec Business Number (NEQ)

Why Register for a Quebec Business Number (NEQ)?

You want to use a different legal name for your business (other than your personal name). Your legal name will still be used as your official business name but you will be able to use an additional name for your business for invoicing and marketing
You want to open a business bank account to separate your personal and business transactions. You will be able to claim the bank fees as a business expense

How to Register for an NEQ in Quebec (For Sole Proprietors)

What You Need:

Your legal name (as the business name)
Business address
Description of your business activities

Steps:

Go to the Registraire des entreprises du Québec (REQ) website.
Select "Déclarer une nouvelle entreprise" (Declare a new business).
Fill in your details, using your legal name as the business name.
Pay the registration fee (~$38).
Receive your 10-digit NEQ immediately after completing the online payment.

Registering for GST & QST

When to Register for GST/QST

You must register for GST/QST in the following situations:

Voluntary Registration:
- You choose to register voluntarily because it is beneficial for your business (e.g., if you have zero-rated or non-taxable revenue).

Mandatory Registration:
- You exceed $30,000 in self-employment revenue within 4 consecutive quarters.
- You must register by the first day of the month following the quarter you exceeded the $30,000 threshold.

What You Need to Register for GST/QST

Your NEQ (from Step 1)
Your Social Insurance Number (SIN)
Business address and contact information
Estimated annual revenue

How to Register for GST and QST

You can register for GST and QST using one of the following methods:

Register a New Business Service: Use this if you are not registered with Revenu Québec. This service allows you to register for consumption taxes, source deductions, corporation income tax, and clicSÉQUR.
My Account for Businesses: Use this if you are already registered with Revenu Québec. Access the service in the Consumption Taxes section in My Account.
Form LM-1-V: File the Application for Registration form if you prefer a paper-based method.