My wife has a small side business out of our house, do we need to file separately ?

[reshaque]

Thanks for your question. You don't need to file separately as per CRA guidelines. Your wife is considered to be a sole proprietor. You and your wife will file normally (T1) but your wife will include form T2125-statement of business income as part of her tax return. 

Please click here to learn about how to complete T2125.