Business Income & Expenses

[kare2k13]

An "Uncommon Situations" screen came up with several choices/questions, but I have no idea where that information came from. I left it unanswered, and after entering everything else, TT has determined that we should take the standard deduction. Do I need to complete this section?  Thanks.

[LudwigVan_fan]

Is the "Uncommon Situations" in the itemized deduction/standard deduction area?

Generally, if you don't have enough itemized deductions, the standard deduction is taken.  However, there are situations where you can not take the standard deduction.  Some of these are:

Certain taxpayers aren't entitled to the standard deduction:

1. A married individual filing as married filing separately whose spouse itemizes deductions
2. An individual who was a nonresident alien or dual status alien during the year (see below for certain exceptions)
3. An individual who files a return for a period of less than 12 months due to a change in his or her annual accounting period
4. An estate or trust, common trust fund, or partnership

https://www.irs.gov/taxtopics/tc551

[kare2k13]

It's difficult to tell where you are exactly in the program ... and especially difficult to get back to solve issues.  I could flag issues before and clear them up later, but not this year for some reason!! 

It is in Business Income and Expenses ... in a section about Qualified Income.

I guess it doesn't matter since after all of the work entering all of the expenses they tell me we should take the standard deduction.  COVID sure made a mess of our business!! 

Thanks for your reply.  I hope I answered your question. 

[VolvoGirl]

No that is totally separate from taking the Standard Deduction.

Don't confuse itemized deductions on schedule A with your business expenses/deductions on schedule C. They are separate. For Schedule A personal deductions, you get to take your itemized deductions or the standard deduction, whichever is larger.  Itemized deductions are things like Medical, Gifts to Charity, State Income Taxes Paid, Mortgage Interest, Property Taxes, Car Registration fees, etc.

You get to take both,  your business expenses AND the Standard Deduction (or your personal Itemized Deductions).  And you have to enter your business expenses.  Be aware, if you have self employment income you can get in trouble for not reporting all your expenses to qualify for the EIC.

Yes, You get to take the QBI Qualified Business Income Deduction.  What is the 20% QBI Deduction and how it's calculated

https://ttlc.intuit.com/community/credits-and-deductions/help/what-is-the-qualified-business-income-...

[kare2k13]

Thank you SO much for clarifying!  I entered everything in the business section, and was working on the personal section and thought they were telling me that all of that work entering everything was a waste!  so ... I guess I'm back to the original question and I'll look into your link and try to figure out what needs to be adjusted. I've been doing this for several years now, and once the adjustment had to do with donations. I don't have that this time.

Thanks again. Have a great rest of the day!  and evening!

[Critter-3]

If you entered the home expenses in the OFFICE IN HOME section of the Business Sch C area then you do NOT also enter them again in the Personal Sch A section ... the program even warns you not to do that ... the personal portion of the expenses you already entered have been moved to the Sch A for you automatically if you have enough to itemize deductions.