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Business & farm
Be aware, that if EIC is the problem, you are required to report all your legitimate expenses even if they reduce your EIC. Omitting some expenses to get a higher EIC may be considered tax fraud.
On the other hand, if you are entering the business first, and will enter other income later, you may not be eligible for any EIC, and you are only seeing this effect because you entered the self-employment first (when you had no other income listed in the program) instead of last.
Also lastly, if you lost money on the business, that loss can be carried forward to a future tax year to offset any future profits. So you don't lose in the long run, and you should enter all your expenses.
‎January 28, 2024
4:41 PM