I am claiming my business for the first time. When I entered the business expenses, the refund went down. Is this common?

[cjsebloom]

I am claiming my bookkeeping business for the first time. When I entered my W2 info, then the business income and the refund all went up. Then I entered the business expenses and the refund dropped by $2,000. Also, how does everyone suggest filing? I mean, I use QBO Accountant and ProConnect Tax Online for my business but have always used TurboTax online for my personal taxes in the past. Is there a way to use ProConnect to do my personal taxes and claim my business?

[itonewbie · Accepted solution]

It doesn't sound right that your business expenses would reduce your refund, while everything else remains static.

Yes, you can use PTO to prepare your personal return but you won't be able to e-file unless you have an EFIN, although you can always file on paper.

I'm sure you're a competent bookkeeper but it sounds like you should consider hiring a competent tax professional to help you with your taxes.  

You may also like to note that this forum is only for tax professionals and we do not address consumer questions even though you may be using PTO.

[TAXOH]

If they are in EIC range adding expenses could lower the refund .

[Just-Lisa-Now-]

See it happen in TurboTax all the time, they enter Sch C expenses and their refund drops...not sure why people are so focused on the refund meter before they finish entering all their data.  Its meaningless until the end.