2025 Tax Filing Documents Checklist for Insurance Brokers and Agent

01. Income and Receivables

The goal here is a complete picture of all commission income, renewal streams, override arrangements, bonuses, and related receipts earned in 2025. Insurance brokers and agents typically receive income from multiple sources simultaneously: T4A slips from some carriers or MGAs, direct carrier payments with no slip, renewal commissions, volume bonuses, and referral fees. Income must be reported in full regardless of whether a T4A was issued for each amount.

□ T4A slips from all carriers and MGAs (if issued)

All commission income must be reported regardless of whether a T4A was issued. If you received commissions from more than one carrier or MGA during 2025, collect T4A slips from each. MGAs do not always issue T4As for all payment types, including renewal commissions paid directly by carriers.

□ T4 slip (if you also had employment income in 2025)

Required if you were employed and self-employed in the same year.

First-year brokers: self-employment income triggers both the employer and employee portions of CPP contributions. CPP on self-employment income is calculated at filing based on your net self-employment income. The amount can be significant and should be planned for.

□ Commission statements from all carriers and MGAs for 2025

Include: Policy number, effective date, commission type (first-year or renewal), gross commission, any MGA deductions or splits, and net amount paid to you.

Commission income should be reconciled to gross commission earned and related MGA deductions, with the final reporting approach confirmed against carrier and MGA statements and your own records. Do not report only the net amount without confirming which basis applies.

□ Renewal commission statements for 2025

Include: Annual renewal commission summaries from each carrier, reconciled against your policy book. These may arrive from carriers directly rather than through an MGA.

Renewal commissions are a significant and recurring income stream for established brokers. They are taxable income in the year they are earned, whether or not a T4A was issued. Confirm all renewal streams are captured, including policies placed in prior years that continue to generate commissions.

□ Override commissions and volume bonuses (if applicable)

Includes production bonuses, persistency bonuses, volume threshold bonuses, and any supplemental compensation paid by a carrier for meeting production or retention targets.

Override and volume bonus payments are taxable income and may arrive separately from regular commission statements. They may not appear on the T4A your MGA issues. Collect any statements, letters, or direct payment confirmations from carriers and flag if the timing of recognition is unclear.

□ Carrier-paid travel incentives and award programs (if applicable)

Trips, conference attendance, award certificates with monetary value, or merchandise received from carriers in recognition of production results.

CRA may treat carrier-paid incentives as taxable income to you based on the fair market value of the benefit received. The tax treatment can vary depending on the nature of the incentive and the relationship with the carrier. Flag all carrier-paid trips or awards received in 2025 for review. Do not assume these are non-taxable.

□ Referral fee income received in 2025 (if applicable)

Includes referral fees received from other advisors, agents, accountants, lawyers, or other referral sources for client introductions.

Referral fees are business income and must be reported whether or not a T4A was issued. Retain documentation of the amount, payer, and date for each receipt.

□ Business bank statements (PDFs or CSV export) for 2025

Used to reconcile all deposits, identify missing commission payments, and confirm income not captured on T4A slips. Commission income from multiple carriers and MGAs can create gaps between T4A totals and actual receipts.

□ Commission chargebacks or clawbacks received from carriers or MGAs in 2025 (if applicable)

Applies where a policy lapsed, was cancelled, or was rescinded and the carrier or MGA recovered commission previously paid to you.

A commission clawback reduces your business income in the year the amount is recovered, provided it was reported as income in a prior year and the recovery is documented. Retain all written notices, deduction statements, or correspondence from the carrier or MGA confirming the amount and reason for the recovery. Do not net chargebacks against current-year commissions without review.

□ Year-end unpaid commissions (policies in force but commission not yet received as of December 31, 2025)

Under accrual accounting, income is reported when earned. If a policy was placed or renewed before December 31 and commission was earned but not yet remitted, it may belong in the 2025 tax year. Confirm with your carrier or MGA statements. If you are providing this information in Section 06 as accounts receivable, do not duplicate it here.

□ Personal investment slips (if applicable)

T3, T5, T5008, and brokerage tax package.

Personal return items, not T2125 business income, but required for a complete T1.

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02. GST/HST

GST/HST treatment for insurance brokers requires careful review and varies by the type of insurance service provided. The core issue is that many insurance-related services are classified as exempt financial services under the Excise Tax Act, meaning they are not subject to GST/HST and no input tax credits (ITCs) can be claimed on related expenses. However, not all income an insurance broker earns falls under the same treatment, and the rules differ across life insurance, P&C insurance, and group benefits lines. Consulting, training, and non-brokering services require separate review.

□ GST/HST registration status: confirm whether you are registered

Many insurance brokers are not registered for GST/HST because their core commission income from arranging insurance contracts is generally classified as an exempt financial service. Registration may not be required and, in some cases, may not be appropriate. If you are unsure whether you should be registered, flag this for review before filing.

□ Breakdown of income by type: insurance brokering commissions vs. other services (if applicable)

Relevant if you earned income in 2025 from consulting, financial planning, training, coaching, speaking, or any activity beyond arranging insurance contracts.

Non-brokering services may be taxable supplies subject to GST/HST even when your commission income is exempt. Mixed supply situations require a separate review of your GST/HST obligations.

□ GST/HST returns filed for 2025 reporting periods (if registered)

Include: Filing confirmations, assessments and reassessments, and adjustment notices.

□ Not registered? Flag if you have income streams that may not qualify as exempt financial services

The $30,000 small-supplier threshold still applies to taxable supplies. If any portion of your income is from taxable services and the cumulative total of those taxable supplies exceeded $30,000 in a single calendar quarter or over four consecutive calendar quarters, registration may be required for that portion of your activity.

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03. Shared Expenses (Allocation Required)

These expenses require a defensible business-use allocation before any deduction can be claimed. Vehicle use is often significant for insurance brokers who meet clients at their homes or businesses, and it is also the area CRA scrutinizes most closely. A mileage log is the single most important document many insurance brokers are missing at filing time.

□ Mileage log for business vehicle use in 2025

Include: Date, starting location, destination, business purpose, and kilometres driven for each trip.

Insurance brokers regularly drive to meet clients at their homes or businesses, conduct policy reviews, deliver documents, attend carrier or MGA events, and service commercial accounts. This is legitimate business driving that can be claimed, but only with documentation. A contemporaneous log recorded at the time of each trip is significantly stronger than a reconstructed estimate. If you do not have a log for 2025, flag this now so we can discuss your options before filing.

□ Total kilometres driven in 2025: business and personal

Used to calculate the business-use percentage applied to all vehicle expenses. The commute between your home and a fixed office location is generally not deductible.

□ Vehicle expense receipts or annual totals by category

Fuel, insurance, repairs and maintenance, registration, business-related parking, and loan interest.

Annual totals by category are sufficient for initial intake. Retain individual receipts in case of CRA review.

□ Vehicle lease agreement or financing statement (if applicable)

Lease and interest deductions are subject to annual CRA limits. Do not estimate these independently. The limits change year to year.

□ Home workspace details, size and use

Include: Total home square footage, workspace square footage, and whether the space is dedicated or mixed-use.

Self-employed business-use-of-home expenses are allowed if the workspace is your principal place of business, or if you use the space only to earn business income and use it regularly and on an ongoing basis to meet clients, customers, or patients. Many insurance brokers conduct client meetings and policy reviews from a home office and do not have a fixed external office. A mixed-use room may still qualify if it is the principal place of business, subject to reasonable allocation. Note: CCA should generally not be claimed on a home office within a principal residence. Doing so can result in the loss of the Principal Residence Exemption on that proportionate portion of the home when it is sold. Flag if CCA on the home has been claimed in any prior year.

□ Rent receipts (renters) or mortgage interest details (homeowners)

Homeowners: Provide a mortgage statement showing the interest and principal split.

Principal repayment is not deductible. Interest only.

□ Utility bills for 2025 (annual totals or monthly statements)

Electricity, heating, water.

Annual totals are sufficient for initial intake. Retain underlying statements in case of CRA review.

□ Internet bills, annual total and your estimated business-use percentage

Allocation required. Do not assume 100% unless the connection is exclusively for business use.

□ Mobile phone and business phone bills, annual total and business-use percentage

Common uses: Client calls, carrier and MGA communication, policy quoting apps, document management, client follow-up.

A separate business-only mobile line can be claimed in full. A shared personal plan requires a percentage allocation. Phone use is typically high for insurance brokers managing an active book of business, and a well-supported allocation is more valuable than an unsupported 100% claim.

□ Home insurance annual premium

Allocation required. Relevant to the home office calculation.

□ Property tax bill (homeowners only)

Allocation required. Relevant to the home office calculation.

□ Business-use percentage notes for all mixed-use assets

For: Laptop, phone, tablet, and any equipment used for both personal and work purposes.

Provide a reasonable percentage estimate and a short rationale. The estimate must be defensible, not perfect.

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04. Direct Business Expenses

These expenses are receipt-based and do not require a percentage allocation, provided they were used entirely or primarily for business. Licensing, insurance, and marketing costs are consistently the most significant categories for insurance brokers and are frequently under-documented at filing time.

□ Provincial licensing fees, renewal fees, and registration costs

Include: Your provincial regulator’s broker or agent licence renewal invoice and payment confirmation for 2025. In Ontario, this includes RIBO (Registered Insurance Brokers of Ontario) fees for P&C and FSRA fees for life and health licences, as applicable to your lines of business.

Licensing fees required to carry on your insurance brokering business are deductible as a business expense on Form T2125. Brokers holding multiple licences across lines of business should collect all applicable renewal invoices.

□ Continuing education receipts (provincially required and voluntary)

Include: Course fees, exam fees, and registration fees for any professional development completed in 2025, including CE credits required for licence renewal.

Continuing education required to maintain your licence is deductible. Keep receipts and a short note on business relevance for any voluntary course.

□ E&O (errors and omissions) insurance premium

Include: Policy invoice and annual premium total. For P&C brokers, confirm whether this is paid individually or through the brokerage, and whether the amount appears on your commission statement as a deduction.

E&O insurance required for provincial licensing is deductible in full as a business expense. If your MGA or brokerage charges the premium against your commission payout rather than billing you separately, it is still a deductible expense. Confirm the gross commission and all deductions with your commission statements.

□ MGA fees, desk fees, and administration fees

Include: Monthly or per-policy fee statements from your MGA or brokerage. Common forms include flat monthly fees, per-policy administration fees, technology platform fees, compliance fees, and back-office support fees.

Watch for: Fees that are withheld from commission payouts rather than invoiced separately. Confirm the gross commission and all deductions with your MGA commission statements. Fees embedded in the commission payout are still deductible as a business expense.

□ Professional association and industry membership fees

Advocis, IBAO, CLHIA, regional insurance broker associations, and any other professional membership dues paid in 2025.

Membership dues for professional associations directly related to your insurance brokering activity are deductible.

□ Referral fees paid out in 2025 (if applicable)

Fees paid to other agents, advisors, accountants, lawyers, or other referral sources for client introductions.

Include: Invoices or written fee agreements, amounts paid, recipient name, and payment date.

Referral fees paid for client referrals are deductible as a business expense when supported by documentation. T4A reporting obligations for contract payments may apply to amounts paid to Canadian resident individuals or certain entities (generally reported in box 048). Under CRA administrative policy, a slip is generally required if total payments exceed $500 in the calendar year or if tax was withheld. Review payer obligations before filing.

□ Insurance quoting, policy management, and broker management system software

Applied Epic, Vertafore, Policy Works, SEMCI, Compulife, LifeGuide, Riskheads, or any other quoting platform or broker management system subscription paid in 2025.

Watch for: Subscriptions billed annually that renew automatically and are not captured in bookkeeping.

□ CRM and client management tools

Salesforce, HubSpot, AgencyZoom, Zoho, or any CRM platform used to manage your book of business in 2025.

□ General business software and office tools

Microsoft 365, Google Workspace, DocuSign or other e-signature tools, scheduling tools, and accounting software.

□ Marketing and advertising expenses

Digital advertising (Google, Meta, LinkedIn), social media management tools, website hosting and domain, printed materials (business cards, brochures, signage), client seminar costs, promotional items, and lead generation platforms.

Keep individual receipts or consolidated statements by platform. Marketing costs for insurance brokers building or growing a book of business can be substantial and are often under-tracked.

□ Hardware and equipment receipts (2025 purchases)

Laptop, desktop, monitors, printer or scanner for document handling, tablet, headset, webcam.

Include: Purchase date, vendor, amount, and estimated business-use percentage for any mixed-use item.

Hardware and equipment are often capital assets and may need to be claimed through CCA rather than as a current expense. First-year deductions can vary depending on the property class, acquisition date, and current tax rules. Provide the exact purchase date and details for review.

□ Accounting and legal fees

Include: Invoices and proof of payment for professional fees paid in 2025.

□ Business banking fees and wire transfer fees

Pull from bank statements. Business account fees are deductible and often overlooked.

□ Meals and entertainment (business-related only)

Include: Receipt, business purpose, and names of attendees for each claim.

Deductible portion is generally 50% of the lesser of the amount incurred and a reasonable amount under the circumstances, subject to limited exceptions. Meals with clients, referral partners, or carrier representatives qualify. Do not claim the full cost.

□ Client appreciation and gift expenses (if applicable)

Policy anniversary gifts, referral thank-you gifts, holiday gifts to clients or referral sources.

Client gifts are a business expense. Retain receipts and note the business purpose and recipient. Gifts that include an element of entertainment may be subject to the 50% meals and entertainment restriction. Flag for review.

□ Business travel expenses (if applicable)

Flights, hotels, taxis, rideshare, and transit. Business travel only, separate from local vehicle expenses claimed in Section 03. Includes travel to carrier events, industry conferences, and MGA training that you paid for personally.

Note: Carrier-paid travel is handled separately in Section 01 as a potential taxable benefit. Only travel you paid for yourself is included here as a deductible expense.

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05. People and Payments

This section covers amounts paid to or on behalf of people, including any assistants or support staff you paid, and health coverage paid for yourself and your family. Each has specific rules that determine how it is treated and how much can be claimed.

□ Payments to an assistant or administrative support person (if applicable)

Include: Invoices or payment records, total amount paid, and type of work performed.

If you paid an assistant as a self-employed contractor, fees-for-service slip reporting (T4A box 048 in most cases) may apply. If the person is treated as an employee, payroll and T4 obligations apply separately. Confirm the working arrangement before filing.

□ Private Health Services Plan (PHSP) premiums (if applicable)

Health and dental insurance plans for yourself, your spouse or common-law partner, and household members, paid through an eligible PHSP provider.

Include: Annual premium total and name of the plan provider.

Deduction is subject to CRA annual per-person limits and income-based restrictions. The plan must be through a qualifying insurance company, trust, or professional organization. The same premium cannot also be claimed as a personal medical expense. Note: as an insurance professional, you may have access to group plans or plans through your MGA. Confirm the plan provider and structure before claiming.

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06. Year-End Position

Insurance brokers filing Form T2125 generally use the accrual method of accounting under CRA rules. Under accrual accounting, income is reported when earned and expenses when incurred, regardless of when cash changes hands. Commission income earned on a policy placed or renewed before December 31 belongs in 2025, even if the carrier or MGA does not remit payment until January. These items capture what was open at year-end and will not be visible from your bank account alone.

□ Year-end accounts receivable: commissions earned but not yet received as of December 31, 2025

Include: Policy effective date, carrier or MGA name, commission type, amount earned, and expected payment date.

Commission earned on a policy placed or renewed before December 31 belongs in the 2025 tax year even if the carrier or MGA does not remit payment until January 2026. Confirm the effective date for policies placed or renewed near year-end with your commission statements.

□ Year-end accounts payable: business expenses incurred but unpaid as of December 31, 2025

Examples: An MGA administration fee outstanding at year-end, a referral fee owed but not yet paid, an accounting invoice received in December and paid in January.

Under accrual accounting, an expense is deductible in the year it is incurred. If a legitimate business expense is owed at December 31 and supported by an invoice or agreement, the deduction belongs in 2025 regardless of when payment is made.

□ Sale or disposal of business assets in 2025 (if applicable)

Include: Date of disposition, proceeds received, original purchase date, and original cost.

May trigger recapture of CCA previously claimed, or a terminal loss, depending on the proceeds and the remaining undepreciated capital cost of the class.

□ Bad debts (if applicable)

If a commission was included in income in a prior year and became genuinely uncollectible (for example, an MGA that failed to remit), it may be deductible. Requires documentation and review. Commission chargebacks are handled separately above.

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07. Prior Year and Planning

These items do not affect every client, but when relevant, they can significantly affect the return. Commission income for insurance brokers often includes large renewal streams that can create significant tax obligations. The RRSP deadline is a hard date. Do not miss it.

□ 2024 Notice of Assessment, and prior-year return copy if available

Confirms carry-forward amounts, unused RRSP room, and any outstanding balances with CRA.

□ Prior-year CCA schedule showing UCC balances by class (if available)

Required if you previously claimed CCA on a vehicle, hardware, or other depreciable assets. The undepreciated capital cost (UCC) balance by class from last year is the starting point for this year’s calculation.

□ RRSP contribution receipts, for the applicable window

Include receipts that fall within the contribution window for the 2025 return.

The 2025 RRSP contribution deadline is March 2, 2026. Contributions made between January 1 and March 2, 2026, fall within the 2025 RRSP contribution window and must be reported for the 2025 filing cycle (Schedule 7), whether or not they are deducted for 2025.

Time-sensitive: March 2, 2026 deadline

□ FHSA contribution receipts (if applicable)

Can affect tax planning in high-income years.

□ CRA instalment reminders and instalment payment confirmations (if applicable)

Insurance brokers with growing renewal books or irregular commission income frequently owe quarterly instalments. Missed or underpaid instalments result in CRA interest charges that are not deductible. If you received instalment reminders in 2025, include all related payment confirmations.

□ Prior-year GST/HST notices, assessments, or adjustments (if registered)

Carryover or filing mismatch issues can affect the current year return.

□ Access to CRA My Account (and My Business Account if you are GST/HST registered)

Confirms instalment balances, outstanding correspondence, account status, and carry-forward amounts. Review before filing.

□ Foreign property reporting (T1135): flag if applicable

Applies if the total cost amount of specified foreign property exceeded $100,000 CAD at any time during 2025. This includes foreign investment accounts and foreign shares held outside a registered plan.

T1135 is a separate filing obligation from the T1 return, generally due on or before the due date of your income tax return. Penalties for non-compliance apply.

□ 2025 filing and payment deadlines acknowledged

Self-employed individuals have a filing deadline of June 15, 2026. However, any balance owing is generally due April 30, 2026. Interest on late payments begins accruing after April 30, regardless of the extended filing deadline.

This distinction matters. The filing extension does not extend the payment deadline. If you expect to owe tax for 2025, plan for payment by April 30, 2026 to avoid interest charges.

□ Any CRA letters related to your 2025 taxes

Review letters, reassessments, requests for information, instalment reminders.

These can change what must be filed or explained. Provide all of them without filtering.

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08. Digital Records and Audit Protection

CRA audits and review requests can arrive years after filing. The documents you gather now may need to be produced in 2027 or 2028. Insurance brokers work across multiple carriers, MGAs, and platforms simultaneously, and income reconciliation is one of the most common audit triggers in commission-based businesses. These two priorities protect the deductions you have claimed and reduce the risk of disallowance if CRA asks questions.

□ Digital backup of all physical receipts

Scan or photograph all paper and thermal receipts before submitting originals or filing. This applies especially to gas station receipts, restaurant receipts, and any printed receipts for meals, parking, client events, or tolls.

Thermal paper receipts fade within 12 to 18 months and are frequently illegible by the time CRA requests them. A faded or blank receipt provides no audit protection. CRA generally accepts a clear digital image of the original as a supporting document, provided the image is legible and complete. Store backups in a cloud folder organized by tax year.

□ Complete commission statement package from all carriers and MGAs

Obtain the full commission statement package from each carrier and MGA showing: gross commission earned by policy, deductions applied (E&O premiums, administration fees, MGA splits), chargebacks processed, and net amount remitted to you for the full calendar year 2025.

This is the key document set that reconciles your reported income against the T4A amounts your carriers and MGAs issued. Insurance brokers often have a meaningful gap between T4A totals and actual income because renewal commissions, bonuses, and direct carrier payments may not all be captured on a single slip. This package is your primary audit support if CRA questions the difference between your reported income and the slips on file. Confirm with each carrier and MGA whether annual commission reconciliation statements are available in your agent portal, and download them before the filing window closes.

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