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kaydeee92782
New Member

Can anyone help me figure out why I do not qualify for Home Office deduction when I work from my office daily and use it for most of my work?

 
4 Replies
Hal_Al
Level 15

Can anyone help me figure out why I do not qualify for Home Office deduction when I work from my office daily and use it for most of my work?

Regular W-2 employees are no longer (since 2018) allowed to deduct job expenses, including the home office deduction. If you're self employed, you can deduct the cost, as a business expense, on schedule C.

 

 Even in the "old days" , job expenses were only a misc. itemized deduction.  You only got to deduct that portion of  your misc. itemized deductions that exceeded 2% of your AGI,  and then only if your total  itemized deductions exceeded the standard deduction (which was doubled under the 2018 tax law. .  (2% rule explained: https://ttlc.intuit.com/questions/2902781-what-is-the-2-rule ).

Mike9241
Level 15

Can anyone help me figure out why I do not qualify for Home Office deduction when I work from my office daily and use it for most of my work?

as a self-employed person, the HO deduction is entered through Schedule C.

did you enter the exclusive use question - no. then no HO deduction

we can't see your entries 

see this link

https://turbotax.intuit.com/tax-tips/small-business-taxes/the-home-office-deduction/L1RZyYxzv 

you cannot take a home office deduction if it would cause your business to operate at a loss. You can deduct home office expenses up to your net income (revenues minus other expenses) and carry over the rest to the following year.

 

if these are not your situation contact support. you can grant permission for them to look at your return

 

Carl
Level 15

Can anyone help me figure out why I do not qualify for Home Office deduction when I work from my office daily and use it for most of my work?

If you are self-employed and claiming HO on SCH C, the program will ask you for information related to the following. (I don't recall exactly how it's worded.)

 - Percentage of business conducted in the HO.   This can be (and usually is) less than 100%.

 - Percentage of time the HO is used for business. This *must* be 100%. If you use the home office for anything other than the business, then it does not qualify for the deduction.

VolvoGirl
Level 15

Can anyone help me figure out why I do not qualify for Home Office deduction when I work from my office daily and use it for most of my work?

Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year.  And you have to answer yes to both questions about exclusive and regular use, not just one.  The area of your home office must be used regularly and exclusively for business to deduct it.

 

Or you checked the box on 32b saying Some Investment is Not at Risk.

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