topic Re: Help with Home office deduction in Self employed

Help with Home office deduction

newttuser12 — Thu, 27 Mar 2025 02:29:09 GMT

I am using TT premier desktop edition.

I have a side business with about 100k income. I received a 1099-MISC (about 100k) and a 1099-NEC (about 1k). I have always been able to deduct my home office in the past with HR block.

I initially made the mistake of creating 2 businesses out of these two 1099s. I realized the mistake and deleted one. So I had a combined biz income of about $101k. I entered various deductions (car, phone, office supplies etc) which were accepted by TT. However, when I tried to deduct my home office, TT says I can't deduct my home office because of my net biz income was zero or less. However, this is clearly not true.

I went to forms. Schedule C, line 29 shows a profit over 90k. Line 30 showed zero home office deduction.

I then went to form 8829. Under "simplified method smart worksheet" line A, gross income limitation was -$8973.

I am not sure where TT got the negative $8973 from. I assume it was from my initial mistake of entering 2 businesses and it used my 1k 1099-NEC as my income. I can't change this negative $8973 on form 8829.

Any tips?

Re: Help with Home office deduction

KeshaH — Thu, 27 Mar 2025 02:47:57 GMT

The gross income limitation is coming from the 8829 Worksheet, Part II, line 9. Review that section and you will see where the negative amount comes from.

If the number still doesn't seem right, I'd love to look at your return and see exactly what you see to help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

Click on Online in the top menu of TurboTax Desktop for Windows
Select 'Send Tax File to Agent'
Write down or send an image of your token number and state then place in this issue.
We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all other states that are included on the return.

Re: Help with Home office deduction

newttuser12 — Thu, 27 Mar 2025 15:01:39 GMT

Thank you for your help.

The worksheet 8829, part II, line 9 is a negative number and I am not sure where it came from. I am unable to change it.

I have sent the return online for help.

Token is 202007805-38667788

State is TX

Thanks

Re: Help with Home office deduction

KeshaH — Fri, 28 Mar 2025 12:34:01 GMT

Thank you for sending over your token.

Your gross income is negative on the 8829 worksheet because line 2 of that worksheet is zero (see screenshot). Line 2 is the percentage of income that you earned from this home office. If you only had one home office and you used that one office all year, this should be 100%.

This percentage comes from the 8829 line 8 smart worksheet (see screenshot). You can enter the percentage directly in this field, or you can go back through the Step-by-Step screens to enter it.

To enter via Step-by-Step, click through the business use of home screens until you come to the screen asking about Business conducted in home office. Enter the appropriate percentage there.

Re: Help with Home office deduction

newttuser12 — Sat, 29 Mar 2025 14:49:15 GMT

Thank you! Problem solved!