Question

Sale of rental

Forum|Forum|4 years ago
March 10, 2022
1 reply
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I sold my rental property in 2021. On the sales information page, when I entered a higher number of "asset sales expenses", the taxes I owed also went up. This is confusing. Should the opposite be the case? Is there an error in TurboTax?

Please help

Thanks

T

ThomasM125

I don't think there is an error in TurboTax.

Sometimes your tax due can increase when your income decreases, as can be the case if you have an earned income credit (EIC). The EIC increases as your income increases up to a point, so if you add expenses on your return and your income decreases as a consequence, it can make your tax due increase.

You can see if you have an earned income credit by seeing if it is listed on line 27(a) of your form 1040.

You can view your form 1040 while working in the online version of TurboTax by following these steps:

While working on your return in the Federal section of TurboTax:

1. Choose the Tax Tools icon on your left menu bar

2. Tools

3. View Tax Summary

4. Choose the Preview my 1040 on your left menu bar

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P

pongokAuthor

Thanks for your answer.

In my case, the EIC (line 27a on form 1040) is blank; which means I don't' have any EIC. So the question and puzzle still remain. Any other suggestions?

Thanks

J

JulieS

TurboTax does background calculations of your taxes constantly through out the tax preparation process. There are not always precisely timed to what you are entering.

You do have a valid concern about whether your return is correct in the end. You should definitely print out your entire tax return before you file it and review the numbers.

If there are numbers that look wrong or need some explanation, please reach out again and we will help you understand, or correct your tax return.

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