The deduction for home office use of a portion of a residence for a daycare is allowed only if a portion is exclusively used on a regular basis for business purposes. You said that the total square footage of your home is 2000 sq. ft., and 800 sq. ft. is used exclusively for the daycare. You use this area only for the daycare. So, this area is used 100% of time for the daycare. Enter your the expenses separately. To enter your daycare as a home office please follow the steps below:
- Sign in TurboTax online.
- Wages & Income > Self-employment income and expenses > Edit
- On the screen, “Your 2022 self-employment work summary’,” Edit > Daycare
- Continue entering your income and expenses.
- On the screen, “Home office summary,” > Edit
- Continue answering the questions.
- On the screen, “What percentage of work of Daycare was done,” enter 100.
- Enter "800" square footage for the office and "2000" for the entire house.
- Continue with the interview.
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