As I am adding my business expenses as a direct sales consultant such as travel, hotel, office supplies, catalogs, mailings, etc. I am finding my return is decreasing. Do i have to report these expenses if they just hurt me? I shouldn't have to lose tax return because I spent more to make my business grow?
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Yes, the IRS requires the self employed to enter all business expenses.
The Earned Income credit is added to the refund meter as you enter your income and personal information.
As you lower your taxable income with deductions, you may lower the amount of your Earned Income Credit (and possibly the Child Tax Credit), thus lowering the dollar amount you see on the refund meter.
The more information you enter, the more accurate the refund meter will be, and will not be totally accurate (and thus truly meaningful) until you have entered all of your information including all income and expense/deductions.
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