I've started entering information into my tax software and my taxes owed have significantly jumped after I added my expenses! I vaguely remember someone posting about this last year but I can't find the post.
I took some time off at the beginning of last year and downsized to a smaller group when i returned so my income wasn't that significant but I'm seriously confused why I have to pay more because I had expenses, it's like I'm having to pay double for some of those items and all the time and energy i spent saving, organized, adding and compiling receipts was for nothing
I'm not done with entering information, still waiting on my husbands w2s, but I just wanted to get things started. I'm probably going to get Tom's book and do it old school (aka paper file) but this has me confused.
nanglgrl 09:25 PM 01-19-2013
If you have dependents it could be that you are qualifying for the earned income credit. When you make less you get less of a credit for earned income.
TomCopeland 10:58 AM 01-20-2013
Originally Posted by Lyss:
I've started entering information into my tax software and my taxes owed have significantly jumped after I added my expenses! I vaguely remember someone posting about this last year but I can't find the post.
I took some time off at the beginning of last year and downsized to a smaller group when i returned so my income wasn't that significant but I'm seriously confused why I have to pay more because I had expenses, it's like I'm having to pay double for some of those items and all the time and energy i spent saving, organized, adding and compiling receipts was for nothing
I'm not done with entering information, still waiting on my husbands w2s, but I just wanted to get things started. I'm probably going to get Tom's book and do it old school (aka paper file) but this has me confused.
It's possible that your Earned Income Credit went down when you had fewer expenses. The Earned Income Credit is goofy in that there are situations where you get a lower credit if your profit is lower.