Deductions & credits

Thank you for sending your diagnostic file and providing the token number.  I was able to take a look at your return to see what is happening.  There is an input required for the home office that does not seem to be going to the right spot to allow the home office expense.  I will follow-up with this and report it to the development team.  

In the meantime, here are the steps you can take to get your return ready to file.  Bear with me, some of them might not make sense.  

1. Open the return and go to Forms so that you can see the actual forms included in your return.  
2. Look for Schedule B on the left side of the screen.  Under the Schedule B, there is a Form 8829.  Highlight the 8829 and delete it.
3. Deleting that form under the Schedule B will remove the home office for your wife as well as the one under Schedule B.
4. Go back to the step-by-step mode and select either Schedule C business to work on (yours or your wife).
5. Go through the home office section again, but this time, when TurboTax automatically fills in your address for the name of the home office, change it to something else (Wife's Home Office, Taxpayer's Home Office).  The names of the home offices need to be different from one another.  
6. If you do not see a question as you go through this home office section that asks what percentage of time is spent in the office, then you will likely see the message again that the home office does not qualify due to income from the business. 
7. If you get the home office deduction for this first home office, then repeat steps 4-6 for the other Schedule C business to add the home office.

If you did not see a question regarding the percentage of time spent in the home office, then follow these steps to enter that information:

1. Go to Forms again.
2. Look for Form 8829 (the name you gave the home office you just entered) on the left side of the screen and highlight this form.  
3. Scroll down the page to the section titled Line 8 Calculation Smart Worksheet.  It will have a box around it.
4. Type 100 in the box on line B.
5. This will then calculate the home office deduction.

@ctbimmer