Skip to main content
April 6, 2023
Question

As I enter my expenses for my rental house, maintenance, repairs etc my tax debt increases instead of staying the same or decreasing as it should. Anyone else noted this?

  • April 6, 2023
  • 1 reply
  • 0 views
I notice TurboTax was doing the same thing last year.  The rental related expenses are supposed to offset the rental income, not increase the amount of tax I owe.  Also, TurboTax is impossible to contact for assistance.

1 reply

April 7, 2023

Sometimes as your income decreases your tax increases. This could be the case if you qualify for an earned income credit, for instance, as the credit may decrease as your income decreases. I suggest you look at your Form 1040 before the additional expenses are entered and after to see what is changing. Pay particular attention to schedule 3, Additional Credits and Payments. The credits reduce your tax but often they will be reduced in response to a reduction in your income. Also look on line 13 of form 1040, that is your Qualified business Income deduction. It may also decrease as your income decreases. Your earned income credit will be listed on line 27.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
April 7, 2023

I don’t have EIC and have already entered all of my income.  So the fact that my tax debt increases with every expense I enter makes no sense.  I could see my taxes not decreasing, but see no reason for an expense to increase what I owe.  It seems like a flaw with TurboTax.

CatinaT1
April 7, 2023

The best way to see what is happening is to look at the forms before and after you add the expense to see what is happening.      

    

Please take these steps to preview your 1040 in TurboTax Online:    

1.Login to TurboTax Online (https://turbotax.intuit.com/)    

2. Click on "Pick up where I left off"    

3. Select "Tax Tools" from the menu on the left side of the screen    

4. Next, select "Tools" from the drop-down menu on the left side of the screen    

5. Then click "View Tax Summary" from the pop-up menu    

6. Lastly, click on "Preview My 1040" from the menu on the left side of the screen.   

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"