Big tax return in question
I’m hoping someone can help ease my mind.
This year we filed taxes with a licensed professional for the first time (we have always used turbo tax) and we got about $11,000 back.
The only thing that changed is I had a little part time side gig in which I made under $10k for the year.
I asked my tax professional why the return was so high and if I’m understanding her correctly, it sounds like you can claim a deficit for 5 years on a new business, and she said she basically takes every deduction for self employed she can. I also think that after she took the deductions it put us eligible for the EITC. We also have 2 dependents.
I asked why there was such a difference between her figures and what TurboTax was giving and she said because she goes in and looks at each eligible deduction and TurboTax basically just does a standard deduction (more or less).
Does this sound accurate?
I want to trust our tax professional because obviously she should know more about all that than I do but it also makes me nervous.
We’re considering having her do some amendments to two previous years in which my husband was self employed and we didn’t take all the deductions we could have, but I want to make sure this info sounds right before we proceed with that.
I’m so scared of getting audited and having to pay it back.