There is a spot where you can input your
subcontracting expenses as Cost of Goods Sold.
Here’s how to edit your Form T2125 if you're using
TurboTax Online:
Click on “Self-Employment” under the Income tab.
Click “Continue” on the ‘Let's look at your
self-employment income and expenses’ page.
Click “Edit” next to the business you want to work
with.
Click “Income and inventory”.
Click “Skip Income”.
On the ‘did you sell products that you bought or
manufactured?’ page, enter the amount you spent on subcontracting next to “Did
you hire any Subcontracts?”.
Click “Continue” to save. Now your business net
income should reflect the changes.
You can also click on the “Find” icon in the top
right and search for “Self”. Select “Self-Employment” and then click the “Go”
button.
Here’s how to edit your Form T2125 if you're using
TurboTax CD/Download:
If you are using the EasyStep Interview method,
click on the “Find” icon in the blue menu. Search for “Business”. Select
“Business Profile” and then click the “Go” button.
Click “Continue” on the ‘Business Summary’ page.
Click “Edit” next to the business you want to work
with.
Click “Continue” until you get to the ‘T2125 Cost
of Goods Sold’ page. There you can put in the amount you spent on Subcontracts.
Click “Continue” to save. Now your business net
income should reflect the changes.
If you are using the Forms method, click on the
“Forms” icon in the blue menu. Search for “T2125”. Select “T2125 P1” and then
click the “OK” button.
If you need more assistance and you are using TurboTax Live Assist & Review, you can talk to a tax expert:
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