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The home office is an expense the tax law places limits on. The mortgage interest and real estate taxes are allowed as an itemized deduction with or without the business. Most expenses that have both personal and business activity have more specific rules than other regular business expenses necessary to create your income.   The home office deduction cannot reduce your net self-employment income below zero. If you had other expenses that created a loss then you could have expenses in excess of income. In this situation the home office expense would not be allowed as indicated previously.   For information purposes here is some guidance on Hobby vs Business income.   Note: You can decide if it is hobby or business income.  This IRS link will help you: Business or Hobby?   Key elements: A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions. A business allows you to deduct the costs necessary to obtain the income.  The law explains that 'you must be engaged in the activity to produce a profit'.  The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business. @mdrzakow 

Very frustrating indeed. I did not accept the workaround suggested and decided to mail the 568 in with the waiver.    In addition, TT online was not letting me e-file CA return without the (incorrect) 568, so I decided to mail in my CA return as well. Will look into TT alternatives next year.   Hope you figure it out!    

Yes, TurboTax can help you prepare and submit Form 8379 (Injured Spouse Allocation). If you are e-filing your joint return, TurboTax will transmit the form along with it.  In TurboTax, you can search for "injured spouse" in the search box and select the Jump to injured spouse link.

Form 540NR is the correct form for both nonresidents and part-year residents, but it should NOT be a NONRESIDENT return. To force TurboTax to recognize you as a Part-Year Resident, follow these steps: Go to the Federal tab and select Personal Info (or My Info). Find your state of residence. Ensure you have selected the state you moved to as your current state of residence as of December 31, 2025. Check the box that says "I lived in another state in 2025" and select California as your previous state. Enter the exact date you moved out of California here. TurboTax relies heavily on this date to determine part-year status. Go to the State Taxes section. Select the Trash Can/Delete icon next to California and confirm deletion. Restart the California interview. When prompted, tell the program you were a Part-Year Resident and confirm your move-out date.   During the California interview, you will see a screen asking: "Were you a California nonresident during all of 2025?"Select No. For "Did you become a California nonresident during 2025?", select Yes.  

No, that will not affect your taxes. If you are a resident of Florida you will file your federal return and no state return. You are an Illinois resident if you were domiciled in Illinois for the entire year. Your domicile is the place where you reside and the place where you intend to return after temporary absences. Temporary absences may include duty in the U.S. Armed Forces, residence in a foreign country, out-of-state residence as a student, or out-of-state residence during the summer or winter. Who is a IL resident? @Bettesvott