I entered my expenses for my rental property, the federal refund decreased, why?

[HelenC12]

Strangely enough, an income decrease can sometimes reduce your refund. One example is reducing or losing the Earned Income Credit (EIC) . Your earned income goes down every time you enter a rental expense. Your EIC is based on your earned income (gross income less expenses), so as your income goes down, so does your refund.

• When figuring your net income from your rental, you must claim all your allowable rental expenses. 

Other refundable and nonrefundable credits that may also be affected are:

The Child Tax Credit,

The Additional Child Tax Credit,

The Education Credits. 

Related information: Why doesn't my refund increase when I enter a deduction?