I had a lost in my rental home but my only refund showing is the taxes I paid + earned income credit. all my other deductions are not impacting my return, is that normal?

baker16 · ‎June 1, 2019

MichaelDC · ‎June 1, 2019

Yes, this is very normal. What's happened is that your standard deduction and exemptions (people on your return times $4,050) have by themselves reduced your taxable income down to $0.

You're right. At this point, a million dollars of child care or donations, or a million dollar rental loss can't reduce your tax below zero. Luckily, Earned Income Credit skirts around this and behaves similarly to the withholding you paid at work.

Please feel free to post any additional details or questions in the comment section.

View solution in original post

MichaelDC · ‎June 1, 2019

Can you preview your 1040 and tell me what's on Line 63? <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/3302322">https://ttlc.intuit.com/replies/3302322</a>

baker16 · ‎June 1, 2019

it shows 0

MichaelDC · ‎June 1, 2019

Great, thanks. Let me know if you need anything else.

baker16 · ‎June 1, 2019

Thank you for your response

MichaelDC · ‎June 1, 2019

More than a pleasure. Good Luck!

MichaelDC · ‎June 1, 2019

Yes, this is very normal. What's happened is that your standard deduction and exemptions (people on your return times $4,050) have by themselves reduced your taxable income down to $0.

You're right. At this point, a million dollars of child care or donations, or a million dollar rental loss can't reduce your tax below zero. Luckily, Earned Income Credit skirts around this and behaves similarly to the withholding you paid at work.

Please feel free to post any additional details or questions in the comment section.

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I had a lost in my rental home but my only refund showing is the taxes I paid + earned income credit. all my other deductions are not impacting my return, is that normal?