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April 25, 2022
Question

Tax calculations- cost of supplies not coming off of income

  • April 25, 2022
  • 1 reply
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When entering cost of supplies or contract labor in 2021 version, credit is not taken from tax liability at 100% of value.

1 reply

rjs
Employee
April 26, 2022

The cost of supplies and the cost of contract labor are not subtracted from your tax. They are subtracted from your taxable business income. Business expenses are a deduction, not a credit. The reduction of your tax depends on what tax bracket your income is in.