GA Low Income Tax Credit & Check This Entry

[TheWisdom]

Hello Experts,

I have 2 problems that need help.

1. What should I enter here? This is GEORGIA State. 

2.  Check this entry? 

[DawnC]

Assuming you are Single with no dependents, leave the GA Low Income Credit with a 1.    

For the 8812 form, enter 0 zero.  Everyone has to answer these questions regarding advance Child Tax Credit payments you may have received, even if you have no dependents.   You would have received letter 6419 if you had.   If you are unsure, check your IRS Account to confirm.  

[TheWisdom]

Thanks!

My Total Gross Income is $12K, which has $3000 from Alabama. It means Alabama's Gross Income is $3000. How do I know the Net Profit in Alabama? Because $3000 is gross income, not net profit.

[JamesG1]

Self-employment profit and loss will have to be allocated between Alabama and Georgia to determine this information.

[TheWisdom]

I know how much is my net profit in Schedule C (line 31). But how do I know how much profit comes from Georgia and how much it comes from Alabama? Because the way we do is to count the total income and total expenses then we have the net profit. The software does not count it separately by state, and nobody does that, right?

So how do I know? Just guess & enter what I think? Doesn't it have to be accurate?

[DawnC]

Where did you do the work to earn that net profit?  See Allocating Earned Income - any reasonable method will suffice as long as you can explain it if need be.