I have seen a few different posts on this topic that usually determine the poster has income that is too low or too high to qualify. I do not believe this applies to my situation.
A few key pieces of information:
Based on all of this I believe I should be able to the LLC to offset my $746 federal tax liability.
The LLC can not be used to offset Self employment tax, only income tax.
With $12,565 of earned income, your standard deduction will reduce your taxable income (and your income tax) to $0.
The fact that you mention adjusting for small business tax, indicates that you have self employment income.
Note, that the self employment tax on line 23 of form 1040 comes after the Schedule 3 credits (on line 20) are applied. Self employment Tax is how the self employed pay their social security and Medicare tax.
Yes, you are correct.
You should be eligible for the LLC, with a maximum tax credit of $2,000. This would bring your tax liability to 0. This credit is non refundable.
Thank you, is there a reason this would not be reflected in TurboTax? I have tried deleting and re-entering my educational expense info from the 1098T form in addition to reviewing my taxable income information multiple times. No matter what I do, TurboTax keeps telling me that I am unable to claim the lifetime learning credit for this year.
The LLC can not be used to offset Self employment tax, only income tax.
With $12,565 of earned income, your standard deduction will reduce your taxable income (and your income tax) to $0.
The fact that you mention adjusting for small business tax, indicates that you have self employment income.
Note, that the self employment tax on line 23 of form 1040 comes after the Schedule 3 credits (on line 20) are applied. Self employment Tax is how the self employed pay their social security and Medicare tax.