Why after I enter an income with no tax withhold, it shows a federal refund?

[tianwaifeixian]

I just started the tax return this year. I entered my business income in 1099 NEC with no federal withhold. Before I enter the number, the Federal Refund =0. After I enter $11,000 as the box 1 on NEC-1099, the refund becomes $1922.  And if I enter any expense, then the refund number decreased. I am really confused. Shouldn't it be:

1. After I entered business expense, since I don't have any tax withhold, shouldn't it be tax due instead of refund?

2. After I entered the expense, should the refund increase instead of decrease? 

Does Turbox tax messed up with "tax refund" and "Tax due"?

[MaryK4]

In this case, it is possible that you qualify for the Earned Income Credit or Child Tax Credits or other credits based on the entered income- because there are other qualifications, you might have more questions to answer in the interview or before finalizing the return.  

[tianwaifeixian]

I still don't understand why after entering my expenses, my refund became smaller. The number should be bigger

[VolvoGirl]

If you are getting the Earned Income Credit on your income then when you reduce your income by entering expenses the EIC credit might be less.    Do you have any children?  Are you over 65?  Lots of things can affect it.  

[tianwaifeixian]

I do have one 20 year old child. At first I entered my rental income first before entering the W2. Now I entered the W2 and it shows tax due. But wierdest thing is, now after I enter more expenses, my tax due is bigger- this has never happend before. For example, I added $40 more on repair expense, while the tax due increased $1. I was expecting a reduction on my tax due not a increase to my tax due when I have more expense entered. 

I then added another $75 on expenses but see no change on the tax due. 

I am really confused why this is happening

[RogerD1]

There are some credits that you may be eligible for that could be reduced or eliminated as your income is reduced with the added expenses and these would cause the tax due to go up.

Rentals typically reports losses on a tax reporting basis and adding expenses could reduce the Qualified Business Income deduction of the rental.

These are just a few potential reasons to explain what you are seeing.  Do realize that it will be in your best interest in the long run to report all your rental expenses accurately on your return.