@yonghai
Did you ever go through the home office expenses section of the Step-by-Step interview? If not, that could be what is causing the problem with the gross income limitation. You may have skipped that part of the interview because you were having trouble getting to the Business Expenses part of the interview. Use the workaround that I posted above to get past the 1099-MISC/1099-K loop and get to business expenses. Then go through the home office expenses topic. That might solve your problem.
