Get your taxes done using TurboTax

You are correct in terms of taxes: you cannot deduct your home office if your business posted a loss. But that does not mean that you shouldn't be able to calculate your home office deduction so that it can be carried forward to next year. That is what TurboTax is failing to do. Or rather, the program is calculating it, but erring in filling in Line 10 of Form 8829, which then causes the error during review of the Federal return. There is a problem with the program. Think of it this way: you should be allowed to carry forward an unallowed home office deduction to next year, but if TurboTax doesn't calculate it, it can't carry it forward. I have the same situation as you do, and I had the same situation last year. For tax year 2019, TurboTax functioned correctly. For tax year 2020, it is not functioning correctly.

 

FYI, I have been in touch with TurboTax by telephone, and they are currently escalating this issue.