Get your taxes done using TurboTax
Yes, PA will allow the home office deduction and also yes, you must allocate the expenses for the office compared to the house as a whole. The best way to do this is based on square footage of living space for the house and the amount used for the office.
You will calculate and allocate the expenses on form PA-40-UE. This can be done manually and entered on the UE form. The following screenshots from TurboTax Home and Business desktop edition illustrates what you will enter and where.
Entering the Business Use Percentage will automatically allocate the totals entered to the home office.
