I have some self-employment income and expenses. I enter the home office and itemize because it is better than the standard deduction. We had 2 offices over the course of the year since we moved. I fill all of this out and the expenses are calculated correctly. When I visit the 'Federal Review' portion of the return though it clears out this expense and changes my taxes due. I revisit the section, answer the questions again, and it recalculates the expense, but going to federal review rests it every time. What should I do?
To clarify what is happening with your return, is there a question that comes up during the review process which causes the change in the home office deduction? If so, please share the question and how you answer it.
There is no question, by merely clicking on 'Federal Review' it changes the amount of the return and marks the home office as 'Needs Review'.
Did you make money in your business?
Gross income limitation.
Your deduction for business use of the home is limited to an amount equal to the gross income derived from the qualified business use of the home reduced by the business deductions that are unrelated to the use of your home.
If the business deductions that are unrelated to the use of your home are greater than the gross income derived from the qualified business use of your home, then you cannot take a deduction for this qualified business use of your home.
Pub 587 - Business Use of Home.
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This is probably it! We had a loss this year so it is setting home office to 0 because of that. I can carry over the home office deduction into next year, right?
Yes, if your business expenses related to the home are greater than the current year's limit, you can carry over the excess to the next year in which you use actual expenses. They are subject to the deduction limit for that year, whether or not you live in the same home during that year. Go back to the Schedule C entry and look for Uncommon Situations. @ClaytonAndrews