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I am a ride-share driver. I was putting in my Uber expenses, and my refund dropped several thousand dollars after I put in my booking fees, etc into misc. expenses. Why?

 
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I am a ride-share driver. I was putting in my Uber expenses, and my refund dropped several thousand dollars after I put in my booking fees, etc into misc. expenses. Why?

Generally, when this happens it is because the expenses are decreasing your income to the point that your credits decrease or you become ineligible for them. If once you entered your Uber Income, it put you in a position where you received Earned Income Credit or were eligible for other credits, and then you entered expenses that decreased your income to the point where you were no longer eligible or it drastically lowered the amount you were entitled to, you would see a large drop like that.

Earned Income Credit is a major one is figured on a bell curve.  It starts at $0 and as your income goes up, the credit goes up until it hits the peak and then starts dropping back down as your income continues to increase.

If you want to see where the major differences are you can go look at the amount of each of your credits currently by clicking on Federal>>>Deductions and Credits, write them down and then go back and delete your expenses then go back and look at the Deductions and Credits Summary again.  You will then need to go back and re-enter the expenses, but this will allow you to see what part is making the difference.

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