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?

[MichaelDC]

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]

it shows 0

[MichaelDC]

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

[baker16]

Thank you for your response

[MichaelDC]

More than a pleasure. Good Luck!

[MichaelDC · Accepted solution]

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.