Disk software Home & Business calculation problem?

[SSam]

Disk Software problem for  Home and Business? First I completed my personal taxes resulting in a $5900 return. Then I completed the business for my wife small resell business which had a $600 loss. However it somehow reduced my tax refund from 5900 to 4600. Does this make any sense to anyone? I’m thinking there is some type of software issue?

[JohnB5677]

Please go to the forms mode, and bring up your 1040.  Check to see if there is a value in line 23, self-employment tax.  By any chance did your wife have a net operating loss that she carried forward.

The Tax Court has concluded that net earnings from self-employment is not reduced by a net operating loss carried forward or carried back to the tax year at issue.  If my calculation is right it would have been about a $8,500 carryforward NOL.

[SSam]

Thanks for info. Line 23 shows 0. The last time my wife had a loss was in 2014. 

[ThomasM125]

It is possible that you have an earned income credit. The credit reduces your tax but it can be reduced when your income decreases. That can cause your tax to increase when your income decreases.

You can look on line 27(a) on your form 1040 to see if you have it. 

You can view your form 1040 while working in the online version of TurboTax by following these steps:

While working on your return in the Federal section of TurboTax:

   1.  Choose the Tax Tools icon on your left menu bar

   2.  Tools

   3.  View Tax Summary

   4.  Choose the Preview my 1040 on your left menu bar

[VolvoGirl]

I would make a copy of your return to test in.  Go up to File-Save As and give it a name like Test.   Then delete the business and print out or look at the 1040 and compare it to the return with the business loss.  Which lines are different?  Compare all the forms.  

[SSam]

Thanks Thomas. 27a is blank. 

[SSam]

 I did what you said and the tax is a similar to the 4600 return. I do have a  photo of the 5900 that showed on the home page so I know Im not dreaming. So I guess what I need to do next year is not just take a picture but print out the personal tax before adding the business. Thank you. 

[VolvoGirl]

Oh you can't get back to the return with the 5900 refund?  Shucks.  Maybe you saw that amount before you entered other stuff not just her business.  

If you have time and want to play with it start a new blank return and do another return from scratch.    Maybe it will show up again if you enter things in the same order. Thdn you can stop and compare.