Home Office Deduction based on net income

[rkmhollis]

2021 Taxes - Turbo Tax is telling me I am ineligible for home office deduction because my net business income is zero orles than zero.  However, my income was ~$39k and expenses ~$26k and net income is $13k.  Is there an error in the software that does not recognize net income properly?  Is there a fix?

[VolvoGirl]

Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year.  And you have to answer yes to both questions about exclusive and regular use, not just one.  The area of your home office must be used regularly and exclusively for business to deduct it.

Or you checked the box on 32b saying Some Investment is not at risk.

[rkmhollis]

Yes, I checked all the boxes correctly and passed the stage where I qualify.  It just thinks I have no net income for some reason. 

My home office is 159 sq ft and taking the simple deduction.  It will not reduce my net income to zero or a loss.  It is telling me my net income is already zero or below zero and thus I don't qualify, but clearly that math is incorrect.

[VolvoGirl]

Are you married?  Check that the home office expenses is entered on the right Schedule C.  Maybe you have another Schedule C showing up and everything is for the right person.

[rkmhollis]

It let me do the recommended method of entering all my utilities and home and such and it used a % to calculate and it accepted it.  Just could not use the simple deduction method.