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Deductions & credits
Thanks for the input. In the process on Turbotax Deluxe of claiming the home office deduction using the simplified method by completing Schedule C. I've entered some business expenses including mileage, supplies and cell and internet costs (about $1,400) to offset the revenue earned ($6,200) as an independent contractor; net profit is about $4,800 after deducting the expenses. Then followed the prompts for the home deduction using the simplified method and told that a home deduction is not allowed because "the net profit was zero or less" which is clearly incorrect. Form 8829 indicates that the Simplified Method smart worksheet line 2A Gross Income Limitation reflects the amount of the expenses ($-1,400) of the business noted above not the Total income or net profit of the business of $6,200 or $4,800 respectively. Is this amount being tied to line 28 instead of line 29 of Schedule C?
Am I doing something incorrectly or is this a bug in the program?
Thanks for any input.