1. What is Form T2125?
Form T2125, Statement of Business or Professional Activities, is the official document attached to your T1 Income Tax Return in Canada. As an independent contractor driving for platforms like DoorDash, Uber, Skip, Lyft, or Amazon Flex, your earnings are classified as sole-proprietorship business income.
Without filing Form T2125 correctly, you run the risk of paying income tax on your gross earnings rather than your net income after legitimate vehicle and operational deductions.
2. Essential T2125 Line Items for Gig Drivers
Gross Business Income
Report your total earnings across all platforms ( DoorDash base pay, tips, surge, order bonuses). Do not deduct platform fees or gas here; report the true gross figure as indicated on your annual tax summaries.
Vehicle Fuel, Maintenance, Insurance & License
Total up your actual annual vehicle expenses (gasoline, engine oil changes, brake pads, tire replacements, vehicle insurance, and registration fees). These total expenses are multiplied by your Business-Use Kilometrage Ratio.
Cell Phone & Mobile Data Plan
Delivery drivers rely continuously on smartphones for dispatching apps and navigation. You can deduct the business-use percentage of your monthly wireless phone bills.
Vehicle Depreciation (CCA)
Vehicles lose value as they accumulate shift mileage. CRA allows a 30% annual declining-balance depreciation deduction (Class 10 or Class 10.1 passenger vehicles), prorated by your business-use percentage.
3. How CRA Calculates Your Deduction Percentage
The Canada Revenue Agency requires you to maintain a detailed vehicle logbook to determine your allowable deduction percentage:
Example: If you drove 15,000 KM in total throughout the year and your OnaVol logbook proves 12,000 KM were driven during delivery shifts, your business ratio is 80%.
If your total annual gas, oil, repairs, and insurance equalled $6,000, you deduct $4,800 ($6,000 × 80%) directly on Line 9281 of Form T2125!
4. Let OnaVol Build Your T2125 Statement Automatically
Instead of spending April scrambling through shoeboxes of faded gas receipts and trying to reconstruct months of shift history, OnaVol automatically categorizes every expense you enter into matching CRA T2125 lines.
At tax time, generate a T2125-ready Tax Report in one click—ready to hand directly to your CPA or enter into TurboTax, Wealthsimple Tax, or H&R Block.
Be Ready for Tax Season with OnaVol
Start building clean, CRA-compliant T2125 records on every shift.