- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
One thing you need to understand and be cognizant of, is this.
The program can only work with the information it has *at* *this* *specific* *point* *in* *time*.
So as an example, it's perfectly viable that those business deductions put your income (again, at *this* specific point in time) that the program knows about, below a threshhold that qualifies you for a deduction - such as the the Earned Income Credit. (Remember, this is only an example). So you're going to see that number for both federal and state, literally jump all over the place. That number is absolutely meaningless until you have completed your tax return in it's absolute entirety *and* all the final checks have been run on it, which occurs just 2-3 screens before that screen with the big orange TRANSMIT MY RETURNS NOW button on it.
Since the data you are referring to is entered in the federal section, and the program will carry it forward to the state return to a point that actually means something, means that what your state return says has absolutely no merit what-so-ever, since at this point you haven't even started the state return yet.
Now, according to what I see on my screen, you are using the online version called Turbotax Self-Employed. Assuming you are using the program the way it is designed and intended to be used, that means the business income/expenses is *the* *very* *first* section you're dealing with in the program, after having dealt with all the other non-financial information in the Personal Info section. So basically, you have "barely" started your return, and the absolute only income the program has to work with *at* *this* *specific* *point* *in* *time*, is your business income. Who knows how much other income the program is not even aware of yet, because you haven't entered it?