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New Member
posted Jul 10, 2024 3:55:47 PM

Why is my refund going down as I enter deductions?

I have been using Turbotax for several years for self employed with a home office.  My income and deductions are relatively the same each year, but for 2023 my business revenue was higher than the previous year, but my taxable income is showing close to half as what it was the previous year (with lower business revenue).  As I put my deductions in, my refund goes down...! What am I doing wrong or is there a glitch?

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3 Replies
Level 2
Jul 11, 2024 2:34:53 PM

What is likely happening is you are receiving the Canada Worker's Benefit (CWB) or some other credits. There is a point where your income reaches that "Threshold" and you receive the maximum amount of this credit.

 

When you add more deductions to our Self-employed income, the amount of CWB benefit and other credits gets lowered and therefore you get a smaller refund. 

 

Thanks for choosing TurboTax.

New Member
Jul 11, 2024 6:24:50 PM

It does say I am receiving the receiving the Canada Worker's Benefit (CWB), but my taxable income is showing around half as last year, even though I made more. As I enter my deductions, the refund not only goes down until it is $0, it then says I have $0 income and wants me to confirm that before submitting.  

Level 2
Jul 12, 2024 9:33:01 AM

You can contact our phone support team as you can share your screen, they will help you to figure out the problem and assist you further.