How do I correct an entry in schedule c form 8829 before I file?

[gails53-outlook-]

error line 4?

[MinhT1]

In TurboTax Online, you cannot directly edit an entry on a tax form.

To edit the error on line 4 of form 8829, you have to revisit the Home Office section under Business expenses, go through the TurboTax interview and correct your answer when you get to the appropriate question.

[lmcolton]

I found what I believe is a calculation error on Form 8829. When the online TurboTax SE system multiplies line 41 (2.5641%) x line 40 ($75,914) it gets $1,975. But that is not correct. It should be $1947 just as it was on my form last year because lines 37-40 have not changed. Consequently, the system wants to depreciate my home (for home office deduction purposes) an extra $28 this year. I even checked the worksheet and it is using the same incorrect number there as well. I called TurboTax Live to report this but was only able to speak to a tax expert, not the IT department. The tax expert said there is no way to edit this number directly on the online version. I was told I would have to download the software and redo my entire return manually. I don't have time for that, sorry. Isn't there someone in IT who can fix this issue, which appears to have also been reported in 2021? Why is this technical problem still unfixed? Can someone help me fix this on my return online so that I don't have to redo everything using software I have to download to my computer? I have already paid for my online Live version. Thank you.

[AmyC]

You do not have to start over when you switch to desktop. Your .data file from online downloads and you pick up your return where you left off. The cx service agent can give you the download since you already paid for the online version and it will not handle your needs. See How do I switch from TurboTax Online to the TurboTax software?

@lmcolton

[AmeliesUncle]

Did you add any "assets" for depreciation for the home?

Is this a daycare, or some some other circumstance that your office size/percentage has varied?

[lmcolton]

No, I did not add any "Assets." The office size has not varied. It has remained at 8.5% of my entire home each year. I am an online tutor.

[lmcolton]

I see. Well, the two agents I spoke to did not know that, so I gave up and submitted the return as-is. Don't know that I should bother filing an amendment just for the extra $28 depreciation difference. But thanks for letting me know. I may go with the downloadable software next year, however.

[AmeliesUncle]

Did you transfer the file from last year's TurboTax?  Or did you start from scratch?  If you started from scratch, I suspect that your "prior depreciation" that you entered may be wrong.

[lmcolton]

Not sure how my "prior depreciation" could be wrong. I entered exactly what appeared on my 8829 form last year, which was calculated correctly. This year, when the online prompt asked me what the depreciation was in prior years, I input the exact depreciation from last year (1,947). The percentage has not changed on line 41 and the Business Basis of the Building has not changed from last year. So then, it is simple math. When you multiply the percentage (2.5641%) on line 41 of the 8829 form times the value provided on line 40 of the 8829 form ($75,914), the answer that TurboTax provides on line 42 is 1,975 (wrong); it should be 1,947 just as it was last year. So, it is off by $28. I really think it is a miscalculation.

[AmeliesUncle]

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@lmcolton wrote:

This year, when the online prompt asked me what the depreciation was in prior years, I input the exact depreciation from last year (1,947).

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Something is definitely wrong with what you entered.  What was the "placed in service date"?

TurboTax uses the mathematical method of depreciation, rather than using the "tables" (the percentage shows on the 8829), which is why the "prior depreciation" affects things (whether or not using the mathematical method of depreciation is questionable for Form 8829, but that is how they have always done it).

[lmcolton]

The "placed in service date" for the home office was the same as what I entered last year: 6/1/2019. That information did not change.

[AmeliesUncle]

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@lmcolton wrote:

 I input the exact depreciation from last year (1,947). 

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I wondering if you misunderstand what "prior depreciation" means.  It means ALL of the prior depreciation, not just last year.  So your "prior depreciation" is about $3001.

[lmcolton]

But my CPA who did my taxes in 2019 did NOT deduct the actual expenses and take the home office depreciation deduction. She should have because it would have saved me some money that year, but she did not despite the fact that I began using my home office that year. So, the only year that I depreciated the home based on this home office to get that deduction was 2020 and that was a depreciation of $1947. That is why I only entered that amount. 

[lmcolton]

So, yes, I understand that "prior depreciation" is CUMULATIVE from year to year. My point is that there has only been one year so far in which the depreciation was filed on the 8829 form (in 2020) since the home office went into use in 2019. 

[lmcolton]

Looking back at my notes from 2019 now, I should have said that my CPA didn't use the depreciation method for 2019 because the home office was only in use for half the year. She probably compared the deduction I would have gotten from taking actual expenses (with home depreciation) and just taking the standard/simplified home office deduction, and she found it was better to do the latter.