turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I am self employed and entering my deductions. Every time I enter one, my deduction drops. I'm confused, shouldn't this be opposite?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

I am self employed and entering my deductions. Every time I enter one, my deduction drops. I'm confused, shouldn't this be opposite?

What deduction drops?    

One reason, By increasing your deductions and expenses it will decease your income and you may not be getting as many credits as before like the EIC credit. You can't go by the refund monitor until you have entered everything in. Also after you reduce your income to zero there is no more refund to get back. But even though your taxable income goes down and you owe less income tax on it, you may owe for other things like self employment tax (if you have a Net Profit) or the 10% early withdrawal penalty from 401k or IRA accounts.

AmyC
Expert Alumni

I am self employed and entering my deductions. Every time I enter one, my deduction drops. I'm confused, shouldn't this be opposite?

I think you mean refund drops because deductions do add up. The more deductions you add, the lower your self-employment tax will be. However, you may be reducing your income so that you are reducing credits like Earned Income Credit, Child tax credit, etc

Preview a copy of your return so you can see the credits you have, your taxable income, SE tax and watch what happens as you enter deductions.

If you need extra time, filing an extension by April 15, 2026, moves your submission deadline to October 15. But remember any taxes owed are still due in full by the original April 15 date.  Pay through either Direct Pay or your individual online account

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question