Do you know why my federal tax due/owed window and my business profit/loss line don't change as I enter business expenses in Schedule C, but only continues to read $0.00?

[ps-clarkson]

Do you know why my "federal tax due/owed"" window and my "business profit/loss" line don't change as I enter business expenses in Schedule C, but only continues to read "$0.00,"?  I have already entered the income, from 1099s received and other sources, and entered several areas of expenses. But at some point, the "federal tax due" window remained constant at $6,000; and the "profit/loss" line remains constant at "$0.00" - that is, it seems like it ought to show a loss, but it doesn't. Can you think of a form or a "check-box" that might relate to this problem?

[MichaelL1 · Accepted solution]

Go to the Sch C business.  EDIT the business and get to screen called " Your --- Business"

At the bottom of the screen, you will see a section called, "Final Details" open up the "Special Situations" and make sure that the button called, "I have money invested in this business that I am not at risk of losing. 

Post a comment if this does not fix this. 

[JayKepps]

I have a similar problem for tax year 2020.   

The costs of running my side business were more than my business income.   

I'm taking the simplified Home Office Deduction (because Turbo's itemized method is an ABOMINATION)

Simple math shows that I had a LOSS this year, but as I add expenses to my schedule C,  Turbo simultaneously adjusts my Home Office Expenses downward,  always ensuring I show a PROFIT, instead of a loss.

4 out of the last 5 years, I have reported a PROFIT.  So why is it not allowing me a loss this year?

[Irene2805]

The expense for your home office is allowable only to take your business income down to zero, but cannot create a loss. In other words, the home office deduction is limited to your net income from the business.  The amount that is not allowed will carry over to your 2021 Schedule C.

@Kip

[JayKepps]

Yes, but shouldn't business expenses on my schedule C reduce my P/L?   I always thought that's what schedule C was for.  To show the costs of doing business.

I did a test. Right now, turbo is showing a net PROFIT of $530.  So I added $1000 in costs to my schedule C.  This should take me from a net PROFIT to a net loss.  But nope!  It just reduces my home office deduction in keeps my net PROFIT at exactly $530.   Makes ZERO sense.

[ReneeM7122]

Please try removing form 8829 and see if that changes your net profit.  

How do I view and delete forms in TurboTax Online?

• Open or continue your return in TurboTax.
• In the left menu, select Tax Tools and then Tools.
• In the pop-up window Tool Center, choose Delete a form.
• Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

The problem could also have to do with whether you are using the simplified or the regular method.  It is a complex calculation and different factors relating to your return could have an impact on it.

@JayKepps