The refund/amount due meter is constantly changing as you enter amounts in TurboTax and that is why you need to wait until all items are entered to see the true refund or amount due.
- You may not be eligible for any credits but since only your husband's W-2 was entered in TurboTax, TurboTax automatically calculates credits and deductions based on what is entered.
- Once you started entering your business expenses, those credits are recalculated and removed by TurboTax, if you're no longer eligible for them.
Below are two possible reasons why the refund amount decreased.
Some income-based credits such as the earned income credit will decrease when you enter more business expenses and decrease your taxable income.
- Please note that the law requires you to deduct all allowable expenses and not leave out some to increase your income-based credits. Source: MinhT1
Another area that is affected by the amount of income on your business is the Qualified Business Income Deduction (QBI). The Qualified Business Income Deduction takes the qualified income and multiplies the amount by 30%.
- As your business Income decreases with the additional expenses, the QBI is decreased. As the QBI is decreased your taxable income and income tax amount will increase. The greater the taxes the lower the refund. Source: KurtL1
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