hair stylist

[mykenzie-efrainsmomma]

this is my first year filing my business .. i have 2 very small w-2's i entered from january. im curious as to why when i put my expenses (color, tools etc) in it changes (lower) my refund.. ?? thanks!! 

[AnnetteB6]

If you are seeing a change in your refund amount when you enter your business expenses on Schedule C, it is probably due to a change in certain credits that are tied to your income.  Some examples would be the Earned Income Tax Credit or the Additional Child Tax Credit.

As your expenses increase, your income will decrease (along with your income tax and self-employment tax).  But, decreasing your income can also change the amount of the credits that may be included on your return.