Home Office deduction error? Saying I can't claim this because there's no net profit - but there is...

[CORETAX9000]

Hello Turbo Tax Community, 

I'm using 2024 Premier and I'm trying to claim the home office deduction against a small amount of side business income. My business did generate a net profit and yet TurboTax says, "It turns out _____ isn't getting the home office deduction. That's because the net profit of ____'s business was zero or less, which means ____ can't get the home office deduction". 

Is this a software bug? The business has a net profit in TurboTax of approximately $7-8K. 

What am I missing? 

[AnnetteB6]

The percent of business use of the home office is missing from the calculation and therefore the result is that the calculation shows a loss for your business.

When you go through the Federal Review of your return, this error will be flagged and you can enter the amount on that review screen.  The amount to enter is the percentage of time that you spend in your home office making money for your business.  If all of your time is spent working in your home office for your business, then enter 100%.

You can also make the correction to the calculation using Forms Mode.  Use these steps:

• Click Forms on the top row of TurboTax.
• Go to Form 8829.
• Scroll to the section titled Line 8 Calculation Smart Worksheet and enter your percent of business use of the home office on line B.
• Click Step-by-Step at the top of the screen to go back to the input screens.