When adding expense for my self employed business my tax refund money goes lower!

[farhad_71414]

Hi all.

I do uber eat and when I add deduct expenses like meals and repair/maintenance my tax refund number on the upper left goes actually down. Is that normal? Does this mean I actually own this amount? even tho it says the refund number and shows green. 

I really appreciate the help im very confused. 

[JulieS]

If the number shows in green, it is your refund. A balance due would show in red.

It is possible that your refund is declining because you have a refundable credit like Earned Income Credit, or Additional Child Tax Credit, that vary with the total amount of income. 

For both of those credits, a very low income limits the amount of the credit.

[Opus 17]

In some cases, adding expenses will decrease your income earned from working.  This should reduce your income tax and self-employment tax but can reduce certain tax credits, especially if you are at lower income levels.  However, if you have not entered all your income yet (like a second job), the numbers aren't final and you really shouldn't pay attention to them. 

Also, this is important:  If you intentionally leave off expenses, in order to make your net profit look bigger so you can claim the credits, this is considered tax fraud.  If audited, you can be subject to fines and you can be barred from claiming EIC in the future. You need to claim your legitimate expenses.

[farhad_71414]

Awesome thanks a lot, so you don't think I should pay attention to the number cause its not final? I already put in my second job, would the number changes when I'm almost done putting everything ?

thanks again

[VolvoGirl]

Right, don't look at it until you are done and ready to file.