Why is Federal Tax Due increasing as I add business expenses?

[biggxj]

I am walking through "the process" using Home & Business, step by step from beginning to end, and as I am adding business expenses, my Federal Tax Due is increasing...not decreasing.  Aren't business expenses supposed to reduce my taxes due?

[Marketstar · Accepted solution]

The Earned Income credit is added to the refund meter as you enter your income and personal information.

As you lower your taxable income with deductions, you may lower the amount of your Earned Income Credit (and possibly the Child Tax Credit), thus lowering the dollar amount you see on the refund meter.

The more information you enter, the more accurate the refund meter will be, and will not be totally accurate (and thus truly meaningful) until you have entered all of your information including all income and expense/deductions.

In other words, you should not concern yourself with the refund meter until you have completed your return