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Right now with selecting the 179 option only getting $2 back in taxes after add business cost etc. Will I get a larger refund if I do not choose it?

I have a very small business that I use also to deliver for Amazon etc, I've had more expenses than pay I'd like to get a refund.
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2 Replies

Right now with selecting the 179 option only getting $2 back in taxes after add business cost etc. Will I get a larger refund if I do not choose it?

By increasing your deductions and expenses it will decease your income and you may not be getting as many credits as before like the EIC credit. You can't go by the refund monitor until you have entered everything in. Also after you reduce your income to zero there is no more refund to get back. But even though your taxable income goes down and you owe less income tax on it, you still owe SE Self Employment tax if you have a Net Profit.

 

Be aware, if you have self employment income you can get in trouble for not reporting all your expenses to qualify for EIC. See this IRS page, scroll down to How to figure the EIC yourself, Special Instructions, see the Caution note, "When figuring your net earnings from self-employment, you must claim all your allowable business expenses."
http://www.irs.gov/publications/p596/ch04.html

 

Right now with selecting the 179 option only getting $2 back in taxes after add business cost etc. Will I get a larger refund if I do not choose it?

As noted by @VolvoGirl , you can't pick and choose which year to claim expenses.

However:

  • Section 179 is limited by your business income.  So if your business income is small, then Section 179 may not provide much benefit this year.
  • Instead of claiming Section 179, see what happens when you just take regular depreciation.
  • Alternatively, see what happens if you take bonus depreciation
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
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