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nhill510
New Member

When I entered my wife's business mileage, my refund amount decreased on the tickers on the left. Do you know why that would happen in TurboTax?

 
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ChristinaS
New Member

When I entered my wife's business mileage, my refund amount decreased on the tickers on the left. Do you know why that would happen in TurboTax?

In some cases, entering deductions can decrease your refund. This is not particularly common, but there are a few likely culprits when it does happen:

-The Earned Income Credit. Lower income, in some cases, means less credit

-IRA contributions. Having too little earned income can make contributions subject to a penalty

-Additional Child Tax Credit. Also can be negatively impacted by reduced earned income

-Child and Dependent Care Credit. Can be negatively impacted by reduced earned income

-The Home Office Deduction: Having a home office when your income is already low or negative can "waste" benefits that are otherwise deductible on Schedule A

Your wife's business reporting should reflect her true expenses, and not be manipulated to produce a better tax result. That being said, many people do overdo it with driving expenses, deducting miles that are commuting or personal.

I would recommend that you remove the miles and preview your tax return (1040) to get a snapshot of the "before", and also ensure that the mileage (and other expenses) aren't inflated.

Preview your 1040 here:

  • My Account
  • Tools
  • View Tax Summary
  • Preview 1040

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1 Reply
ChristinaS
New Member

When I entered my wife's business mileage, my refund amount decreased on the tickers on the left. Do you know why that would happen in TurboTax?

In some cases, entering deductions can decrease your refund. This is not particularly common, but there are a few likely culprits when it does happen:

-The Earned Income Credit. Lower income, in some cases, means less credit

-IRA contributions. Having too little earned income can make contributions subject to a penalty

-Additional Child Tax Credit. Also can be negatively impacted by reduced earned income

-Child and Dependent Care Credit. Can be negatively impacted by reduced earned income

-The Home Office Deduction: Having a home office when your income is already low or negative can "waste" benefits that are otherwise deductible on Schedule A

Your wife's business reporting should reflect her true expenses, and not be manipulated to produce a better tax result. That being said, many people do overdo it with driving expenses, deducting miles that are commuting or personal.

I would recommend that you remove the miles and preview your tax return (1040) to get a snapshot of the "before", and also ensure that the mileage (and other expenses) aren't inflated.

Preview your 1040 here:

  • My Account
  • Tools
  • View Tax Summary
  • Preview 1040

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