Working on business side and put in business income and then business expenses and it made my refund go down?

boo1110 — Sat, 01 Jun 2019 06:44:50 GMT

With only having limited information about your personal...

Patrice — Sat, 01 Jun 2019 06:44:51 GMT

With only having limited information about your personal tax situation here is an explanation of a few reasons your refund may go down whenever you enter business income and business expenses.

Whenever you enter business income you are subject to self-employment taxes. Self-employment tax is 15.3% (which consist of the 12.4% of Social Security tax plus the 2.9% of Medicare tax). If you are reporting a profit with your business then self-employment taxes can reduce your anticipated refund. If your business expenses are more than your business income and you are reporting a loss with your business then this can affect certain "income" based credits such as earned income credit.

topic Working on business side and put in business income and then business expenses and it made my refund go down? in Business & farm

Working on business side and put in business income and then business expenses and it made my refund go down?

With only having limited information about your personal...