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It depends.   Requirements to Claim the Home Office Deduction Regardless of the method chosen, there are two basic requirements for your home to qualify as a deduction: Regular and exclusive use. Principal place of your business.   Regular and Exclusive Use. You must regularly use part of your home exclusively for conducting business. For example, if you use an extra room to run your business, you can take a home office deduction for that extra room.   Principal Place of Your Business. You must show that you use your home as your principal place of business. If you conduct business at a location outside of your home, but also use your home substantially and regularly to conduct business, you may qualify for a home office deduction. For example, if you have in-person meetings with patients, clients, or customers in your home in the normal course of your business, even though you also carry on business at another location, you can deduct your expenses for the part of your home used exclusively and regularly for business.   You can deduct expenses for a separate free-standing structure, such as a studio, garage, or barn, if you use it exclusively and regularly for your business. The structure does not have to be your principal place of business or the only place where you meet patients, clients, or customers.   Generally, deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities.   Additional tests for employee use. If you are an employee and you use a part of your home for business, you may qualify for a deduction for its business use. You must meet the tests discussed above plus: Your business use must be for the convenience of your employer. You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer. If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home. For a full explanation of tax deductions for your home office refer to Publication 587, Business Use of Your Home. In this publication you will find: Requirements for qualifying to deduct expenses (including special rules for storing inventory or product samples). Types of expenses you can deduct. How to figure the deduction (including depreciation of your home). Special rules for daycare providers. Tax implications of selling a home that was used partly for business. Records you should keep. Where to deduct your expenses (including Form 8829, Expenses for Business Use of Your Home, required if you are self-employed and claiming this deduction using the regular method).  

Did you get Form 1098 and try entering via step-by-step? Can you ignore the error and e-file? Are you itemizing deductions or taking the Standard Deduction? (in which case the mortgage interest won't matter) 

I have the same issue. I am not sure how checking this box affects the numbers but it is just wrong to have this checked in the first place. Followed you direction but there is no such Tax Tool in any menu. Is there a place in one of the forms? What else is that check box connected to that I need to clear out?

Why is there only $3700 in box 1 (1098-T) if her tuition was $58,000?   The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income.  If you claim the tuition credit, you do need to report that you got one  (the TurboTax interview will handle this) You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2024 expenses". Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.   Scholarships that pay for qualified educational expenses (QEE - tuition, fees, books and other course materials) is tax free.  Scholarship amounts that exceed QEE is taxable income, on the student’s tax return. Room & board are not QEE. If box 5 of the 1098-T exceeds box 1, TurboTax (TT) will treat the difference as taxable income, unless you enter additional QEE at books and other expenses. If you are entering the 1098-T, on your return, TT will advise  you that your student has taxable scholarship income, to be reported on her return.  It will not (and should not) enter the taxable scholarship on your tax return. ____________________________________________________________________________________________ There is a tax “loop hole” available to claim an education credit, for the parents of students on scholarship. The student reports all his scholarship, up to the amount needed to claim the American Opportunity Credit (AOC), as income on his return. That way, the parents  (or himself, if he is not a dependent) can claim the tuition credit on their return. They can do this because that much tuition was no longer paid by "tax free" scholarship.  You cannot do this  if the conditions of the grant are that it be used to pay for qualified expenses. Using an example: Student has $10,000 in box 5 of the 1098-T and $8000 in box 1. At first glance he/she has $2000 of taxable income and nobody can claim the American opportunity credit. But if she reports $6000 as income on her return, the parents can claim $4000 of qualified expenses on their return. Books and computers are also qualifying expenses for the AOC. So, extending the example, the student had another $1000 in expenses for those course materials, paid out of pocket. She would only need to report $5000 of taxable scholarship income, instead of $6000. The IRS actually encourages use of this technique. From the form 1040 instructions: “You may be able to increase an education credit if the student chooses to include all or part of a Pell grant or certain other scholarships or fellowships in income. For more information, see Pub. 970, the instructions for Form 1040 and IRS.gov/EdCredit".  PUB 970 even has examples of how to do the “loop hole”.

Remember that an extension does not give you more time to pay.   You need to pay your tax due by April 15.   The extension only gives you more time to prepare and file your tax return forms.   https://turbotax.intuit.com/irs-tax-extensions/   https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-extension/need-file-extension-personal-state-taxes/L32Mt8ZNv_US_en_US?uid=m9a3q808

Tennessee is one of a handful of states with no personal income tax. Retirement savings and Social Security are also not taxed at the state level.   Where are you in the TurboTax software that it is asking this question?  Please clarify.  

It depends on what program you are using. See your options here: How do I file an IRS tax extension? - TurboTax Support - Intuit   This will extend the time you have to file your taxes until October 15th, 2025.     Also, you may have to do your state taxes: Do I need to file an extension for my personal state taxes?   Remember, an extension gives you more time to prepare your taxes, but it doesn't extend the time to pay your taxes.  If you have an indication that you will owe taxes, you should make the payment by the original due date of the tax return to avoid additional interest and penalties.   

Hoping someone else can pick up this thread.   I also am a DOE employee and am exempt. I am in the same situation as the initial poster.  There is now a NYC1127 form for me to print and file.  I used the TurboTax links to determine I was exempt.  I can't recall the exact buttons I pushed as per the response, but if I knew I was exempt I wouldn't have said I needed to complete this form.  I most likely hit continue or done or whatever the prompt is.   Do I still have to file it?