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Get your taxes done using TurboTax
It probably has something to do with how you allocated the income and expenses on Schedule C between the 2 offices. After reviewing your worksheets and Forms 8829, carefully go back through your entries.
Look at your Forms 8829 and related worksheets. You should have 2 sets, one for each office. The home office deduction is limited to the net income on your Schedule C and the worksheets show how the percentages you entered (portion of income earned in each office) are used to calculate your deduction. Each worksheet has your max deduction in Part II - Line 9. Check both worksheets and the review each Form 8829. Line 36 (Form 8829) will show each home office's total calculation.
Finally, Schedule C, Line 30 will show your deduction for both home offices combined. You can only use the simplified method for one office. See the note below, as you may wish to switch your deduction method choice based on the following:
- For homeowners, it is wiser to use the simplified method because there is no depreciation in the simplified method, i.e., no need to re-capture the depreciation when the home is sold.
- For renters, the actual expenses usually give bigger deduction.
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