2022 Tarbo Tax Home & Business software, form 8829 Asset Entry Worksheet Line 4

[jvec-icloud-com]

2022 Tarbo Tax Home & Business software, form 8829 Asset Entry Worksheet Line 4
‘asking for enter total cost when asset was acquired. I don’t know how to answer. Is it amount of home when I purchased over 12 years ago?

[ThomasM125]

Yes, I believe you are entering information for a home office deduction, so you would enter the cost of the house when purchased.

[jvec-icloud-com]

Yes, I tried to enter the cost of the house but after entered, my refund amount went down from $2k to less than $1k. Why is that much different for just enter my house cost when I bought long time ago?

[ThomasM125]

This usually happens when you have a credit, such as the earned income credit, that decreases as your income decreases. The earned income credit reduces your tax at an increasing rate as your income increases up to a certain level. So, when you enter the house cost your income goes down, and the credit (reduction in tax) goes down more than your decrease in tax.

You can look at your schedule 3 to see what credits you may have in your program, and see how they change when you add or subtract the house cost. 

To view your form 1040 and schedule 1 to 3:

1. Choose Tax Tools from your left menu bar in TurboTax Online
2. Choose Tools
3. Choose View Tax Summary
4. See the Preview my 1040 option in the left menu bar and click on it
5. Choose the Back option in the left menu bar when you are done