Small Business Tax Question re: EIC

[fireflies~for~me]

We have been poverty level for the past two years while hubby has finished grad school...GRADUATION MAY 9th WooHOO!

I have had a small business that made us about 5K profit this year. So basically we lived off food stamps and massive school loans.

Well, when I do Turbotax, the more expenses I itemize for that small business, I can see the refund ticker go down down down. So, looked up some of the reasons why and it looks like our Earned Income Credit would be affected for some reason. So...I am just going to delete expenses that were borderline personal/business related.

Anyone want to shed light on this??

[PlayaMama]

i did mine and i have to say, only deduct the things that are really business expenses. we paid in a lot of taxes last year too so we got a refund but i noticed that the things i deducted certainly didn't seem to help the size of our refund very much. and i'm super paranoid about the irs so i'm always super honest about that stuff anyway

[Ballack]

The person has to claim for the real office expenses as they will ask for the receipt. Small business tax deductions are generally put into practice on the expenses concerned in the business. These expenses contain office stationeries, advertisements, postage charges, shipping fees, telephone bills, and Internet charges.