why my refund goes down as my rental expenses go up?

[ZoltanB45]

Rental Income is a factor in whether or not you receive earned income credit. That amount might be fluctuating based on the profit of the rental property.

[whateverlola]

Ok, but when my income increases I expect my tax liability to increase also.

I expect my tax liability to decrease as my income decreases when I add more expenses to rental form.

The opposite occurs.

It happens again when I try to correct a loss carryover also QBI related that should not exist form 2019, my refund goes way up, even though I am increasing my AGI.  Makes not sense.

[MarilynG1]

It could be related to QBI as you mentioned.  However, in this case, when your income increases, the QBI credit could increase, and your tax liability could actually go down.  Since we can't see your return in this forum, try this  check to try to determine what's causing the increase/decrease. 

Per Expert @VanessaA:

"Generally when your refund drops after you enter expenses it is because you were getting some type of tax credit where your income was at the perfect level, then when you entered the expense so your income dropped causing you to qualify for a smaller credit or no credit.  

To figure out why this happened in your situation, look at your 1040 with the expenses added and write them down or print it out.  Then go back and remove the expenses, look at your 1040 with the expenses removed, then compare the two.  This will tell you where the change is coming from. 

To do this click the following after logging back into your return if you are using TurboTax Online:

• Tax Tools
• Tools
• View Tax Summary
• Preview My 1040"

[haghanian]

I have the same issue. In my situation I have losses from previous years that gets carried over and it depresses the operating profit for this year. Then the QBI benefit is reduced thereby increasing your tax. The only way to see the carryover loss is if you go to Schedule E worksheets at the bottom.
I have another property that has no carryover loss and the rational outcome occurs where more expenses decreases the tax due. I suggest you include the expenses because at some point in the future you’ll stop getting the benefit of your carryover passive losses and will owe much more taxes associated with your passive income gains.