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Business Use Percentage for Daycare
The Home Office Percentage (Business Use Percentage) for my home daycare is not being calculated corrected by Turbo Tax Home and Business. I use 1400 sq ft of my 2800 sq ft home for the daycare. I use my home 10 hours a day, 5 days per week for the day care. In 2020, the daycare was not in operation for 116 days. The Home Office Percentage should be calculated as follows : 366 days - 116 days = 250 days in which my home operated as daycare ; 250 days x 10 hours/ day = 2500 hours that my home operated as a daycare in 2020.
Total hours for 2020 = 366 days x 24 hours/day = 8784 hours. 2500 hours/8784 hours = 28.46% x 1400/2800 = 14.23% However, Turbo Tax comes up with a home Office Percentage of 8.2%. When I entered the correct information on the actual Form 8829, I got a review error saying I could not e-file with overridden information on that form. How can this be corrected. How can I report this problem directly to Turbo Tax. I followed the directions given in the reply initially-Turbo Tax software is not calculating the percentage properly.