Question
How can $1 make this big a change?
I was playing around with entering business expenses and suddenly my tax bill changed by over $2k. Before putting in business expenses, my tax bill is $5400. If I put in $8340, my tax bill is $3400, and this is what I would expect. BUT if I put in $8341 in expenses, that drops to $1000. $1 difference => $2.4k in savings?
The thing that I can see changing with that $1 is that the income & adjustments top-line jumps $10k. I don't know how to break that down as to why that $1 = $10k, and I can't figure out why it would do that. I can justify expenses up to that much, but it does increase audit risk.
