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It lowers the total income on schedule c but I earned the money. Say I claimed 12000
but had 4000 in standard mileage it drops my earned income credit to 8000 as my earned income. Should I just not claim my milage? With 12000 income my credit would
be around 4500.(money refunded)- taxes on
12000

2007-03-11 16:49:24 · 2 answers · asked by lectric lady 2 in Business & Finance Taxes United States

2 answers

You can change your vehicle expenses to your actual expenses. Cost of gas, repairs, etc. Be as conservative with your expenses as you can. That will reduce your deductions and raise your EIC.

2007-03-11 17:04:35 · answer #1 · answered by ninasgramma 7 · 0 0

You've answered your own question - taking a deduction against your schedule C income reduces that income - and since it's earned income, that affects your EIC.

2007-03-11 23:56:00 · answer #2 · answered by Judy 7 · 0 0

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