Subcontractor for self-employed services.

[dvjstudios2026]

I'm a self-employed business owner, and I provide photography and videography services. I'm wondering where I can add the payments I paid to all my subcontractors that I hired to help with my services. I provided them with the T4A as I paid them a total more than $500 each. 

I've seen a lot of posts about deleting the whole business redoing it and changing it as a business instead of a service, but I offer services and not manufacturing or selling any goods. Is there a way to put the subcontractor's payments in the services section like the previous TurboTax(2021 and 2022)

[TurboTaxSusan · Accepted solution]

Payments to subcontractors goes into the Inventory section, which is where it went in previous years. There is no "services" section regardless of whether you choose professional or business.

There is a space for Salaries, wages, and benefits (including employer's contributions) in the expenses section, but this is for amounts regarding employees. 

Professional and business income are both reported on Form T2125. However, because of differences in the way professional income is calculated, not all businesses are considered professions for tax purposes. Professional includes the following:

• Architect 
• Chartered or Certified Accountant 
• Dentist 
• Engineer 
• Lawyer or Notary 
• Management Consultant 
• Physician, surgeon, or specialist 
• Psychologist 
• Veterinarian 
• Other accounting or bookkeeping services 
• Other health practitioner 
• Other scientific or technical services 
• Other social service practitioner 

CRA considers other self-employment income (as long as it's not from farming or fishing) to be business income rather than professional income. 

If you have both business and professional income, you have to fill out a separate Form T2125 for each. 

[dvjstudios2026]

Thank you so much! That's the most perfect answer I've ever seen in this community, as I see many people struggling with it. 

[vbanman]

I am a registered psychotherapist and own my own business. I now have a subcontractor. Based on your response to this post, my understanding is that we would be professional services. If so and not "business" how do I add the subcontractor's salary/fee?

[TurboTaxAniqua]

@vbanman You can claim under expenses when filling out T2125. Use the T2125 form to report either business or professional income and expenses. This form combines the two previous forms, T2124, Statement of Business Activities, and T2032, Statement of Professional Activities.

Tax Deductions for the Self-Employed

[vbanman]

Thank you for the advice. Do I do that through Turbo tax? Where do I upload the form? Do I claim all my other expenses through Turbo tax except for the subcontractor and her salary that I then claim on this form?