Why is TurboTax telling me I’m self-employed?
Below are some reasons why TurboTax might say you’re self-employed.
If you have entered an amount from any of the boxes on the slips listed below, you have what the Canada Revenue Agency (CRA) says is self-employment or business income.
- T4 slip: box 81, 82 or 83
- T4A slip: box 20 or 48
- T4A slip: box 28 and you selected yes to the question Does the income declared in Box 028 consist of fees collected for services you provided? in the online edition of TurboTax
- T3 slip: box 24 (foreign business income)
If you entered an amount in any of these boxes, TurboTax will ask you additional questions in order to report it as business income or to automatically add the information to a Form T2125: Statement of Business Activities for you. You might be asked to enter your province of self-employment, your business address, your industry code, your fiscal period or to complete a self-employment statement.
If you selected “I was self employed (freelancer, contractor, independent worker, professional, commission-based, farming, fishing)” in the profile section of your tax return, you might earn what is considered self-employment income – even if you don’t own a business. Below are some examples of income sources that TurboTax considers self-employment income:
- Independent contractor
- Sole proprietor
- Business owner
- Rideshare driver
- Professional (chartered accountant, lawyer, physician, engineer)
Note: Rental income is not self-employment income.
Note: If you are using TurboTax Self-Employed, TurboTax Live Assist & Review Self-Employed, TurboTax Live Full Service Self-Employed or TurboTax Home & Business, and you do not earn income from self-employment, you can still do your return in that product. If you change products, you will have to start a new return.
- What is a T4A (and matching RL-1/RL-2, if applicable)?
- What is my industry code?
- Which TurboTax product should I use if I’m self-employed?