Reporting your income

If you determine that you are self-employed, report your income from daycare as business income on your income tax and benefit return.

Include your gross self-employment income on line 162, and your net self-employment income (loss) on line 135.

Calculate your gross and net income (loss) on a fiscal year basis using the accrual accounting method. For more information on fiscal year ends and the accrual accounting method, go to Income taxes.

To calculate your net income or loss, we encourage you to use Form T2125, Statement of Business or Professional Activities. However, we continue to accept other types of financial statements.

If you are filing your return electronically, use the industry code for daycare provided within your tax preparation software.

If you are filing a paper return and reporting your income and expenses on Form T2125, enter the code for daycare, 624410, in the Industry code box located in the Identification section of the form.

For more information, go to Report business or professional income and expenses.

Forms and publications

• Guide T4002, Business and Professional Income
• Booklet P134, Using Your Home for Daycare
• Form T2125, Statement of Business or Professional Activities

Related topics

• Sole proprietors and partnerships
• Capital cost allowance (CCA) for your daycare

Date modified:

2017-01-03