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Investors & landlords
That can happen if you have an earned income credit. The credit rises as your income rises up to a certain level, so if you report more depreciation it can increase your tax due. When you reduce your business income, that can also reduce your earned income credit, often by more than your tax decreases, so tax due goes up. You can look on line 27(a) of your form 1040 to see your earned income credit, if you have one.
You can view your form 1040 while working in the online version of TurboTax by following these steps:
While working on your return in the Federal section of TurboTax:
1. Choose the Tax Tools icon on your left menu bar
2. Tools
3. View Tax Summary
4. Choose the Preview my 1040 on your left menu bar
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‎February 23, 2022
1:46 PM