Do I have to deduct office expenses on schedule C 2024 if little income

[jcmoney]

I have been in the Landscaping business for 21 years and have used Turbo Tax Home & Business every year and have pretty much made a small profit every year after the first 5 years. I used the office and vehicle deduction every year as well as other expenses. Gross income for 2024 was only $7300 and I have the child tax credit that eats up all of the refund if I deduct all of the business expenses. My question is do i have to include particularly my office expense. I only have 1 truck for my business that i didn't use in 2024 because wasn't operable.

[AnnetteB6]

If you have business expenses and you meet the qualifications to claim those expenses, then it is your responsibility to include them as part of your tax return.  Otherwise, you are not filing a complete and accurate tax return.  

If you did not use your vehicle for business because it was not operable, then you should not claim it.  

Choosing to omit actual business expenses to increase your tax refund is similar to not claiming all of your income to reduce the amount you owe.  Neither situation is a good idea in the eyes of the IRS.

[jcmoney]

Thank you for the information, but what if I just delete the office on schedule C?

[ThomasM125]

If the office is a necessary and ordinary business expense then you should include it in your business filing on Schedule C, especially since you have deducted it in previous years.

[AmeliesUncle]

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@jcmoney wrote:

Thank you for the information, but what if I just delete the office on schedule C?

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As was noted above, you need to report your correct income and expenses.

If you intentionally delete a valid expense, it could be filing a false tax return.

With that being said, reporting the Home Office deduction should only reduced your tax (or keep it the same).  It should not affect how the Child Tax Credit is allowed.  IF you mean the "Earned Income Credit", the IRS specifically states you must include all allowable deductions, so you can't intentionally omit a valid deduction.