Business and professional income have key differences:

1. Business income involves inventory and sales
2. Professional income involves work-in-progress and fees

Professionals are typically governed by licensing bodies. Examples include:

1. Architects
2. Dentists
3. Doctors
4. Engineers
5. Lawyers

Business income

Business income usually comes from:

• Selling goods to customers
• Providing services

Businesses often have inventory and may sell products they didn't create themselves.

Professional income

Professional income usually comes from:

• Providing services that require specific expertise
• Charging fees for specialized work

Professionals often have work-in-progress and typically offer services based on their specialized knowledge or skills.

For more details, refer to the CRA's guidelines on reporting business income and reporting professional income.

For help entering business or professional income in Wealthsimple Tax, contact our support team. For advice on how to classify your income consider consulting with a tax expert.