Why does entering expenses for my rental property cause my tax due go up instead of down?
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New Member

Why does entering expenses for my rental property cause my tax due go up instead of down?

I started on the rental property section and realizes the tax due was going up for each expense I entered (property taxes, insurance, etc) I took the expenses out and the tax due went back down. How can that be correct?


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Level 15

Why does entering expenses for my rental property cause my tax due go up instead of down?

Likely it is due to the way EIC is calculated (on a bell curve).

However, you are required to claim all of your expenses.

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New Member

Why does entering expenses for my rental property cause my tax due go up instead of down?

That is definitely not it. Fortunately or unfortunately, we do not qualify for the Earned Income Credit.
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New Member

Why does entering expenses for my rental property cause my tax due go up instead of down?

I think I've I figured it out - it is the new qualified business income deduction. Because the new 20% deduction is a below the line deduction, it lowers the tax more than expenses do.
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