I have seen my overall refund go DOWN as I add expenses, and read some of the rationale on this website. Sounds like as you pass through various adjusted income levels the overall tax liability can go the wrong way for the taxpayer entering expenses.
Does TurboTax come in at the end and tell me when I should NOT take which expenses to optimize my refund?
Is there anything in the TurboTax algorithm that comes in at the end. My fear is that I either won't enter all the items and should have, backing off because I saw it go down part way through the process, OR that I put all the information in and cost myself, and forget to pull something back out after. Help!
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It is possible that by entering more business expenses into a return that you are affecting your ability to claim Earned Income Credits. The IRS is very adamant however, that if you have a business you "must" list all of your relevant business expenses even if it results in a reduction in the EIC and hurts your tax position. Turbo Tax will not tell you how to optimize your refund for this event, as the rule is you "must" list your business expenses as are, and you cannot push your expenses into another year. What you can do however, if you have "new" assets placed in service for 2015 is work on seeing if you are expensing assets too fast by taking certain section 168 or 179 expensing elections on the "new" assets.
It is possible that by entering more business expenses into a return that you are affecting your ability to claim Earned Income Credits. The IRS is very adamant however, that if you have a business you "must" list all of your relevant business expenses even if it results in a reduction in the EIC and hurts your tax position. Turbo Tax will not tell you how to optimize your refund for this event, as the rule is you "must" list your business expenses as are, and you cannot push your expenses into another year. What you can do however, if you have "new" assets placed in service for 2015 is work on seeing if you are expensing assets too fast by taking certain section 168 or 179 expensing elections on the "new" assets.
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