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Daycare and Taxes>Tom-Using Turbo But Have One ?-Before Deadline
MomOfTwins+2 08:32 AM 04-17-2012
I posted a ? late last night and have figured most of it out. It appears on Turbo Tax, it calculates my t/s% on the 8829 but on line 26 it takes the lesser adjusted gross income from schedule C over the deductions calculated on form 8829 line 25. If it took the larger amount I would actually have a loss for the year 2011 which was the start of my business so I had more start up costs. Miraculously, when I use the smaller amount, I break completely even which scares me because I think it will red flag me for having no profit or loss, just breaking even. Just need to know if it sounds like I am doing it right.
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TomCopeland 02:24 PM 04-17-2012
Your expenses from Form 8829 can't create or increase a business loss. If your 8829 expenses exceed your tentative profit from Schedule C, you can carry forward the excess expenses to your 2012 tax return. In this situation you would show zero profit on Schedule C which is fine and won't attract IRS attention. Make sure you pick up these carry over expenses from line 43 when doing your 2012 tax return.
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MomOfTwins+2 06:17 AM 04-19-2012
New to this so trying to figure out how to say thank you Tom!! I will definitely carry over the difference to next year's taxes.
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