Form 8829 bug

[yshin21]

This is TurboTax Deluxe 2024 Windows Desktop version. It seems that there is a bug in Form 8829 (Expenses for Business Use of Your Home).

Line 8 says "Enter the amount from Schedule C, line 29". But TT is entering the amount from Schedule C, line 30. This will have the effect of substantially limiting the allowable operating expenses.

I ask that this bug be fixed asap. Thank you.

[AnnetteB6 · Accepted solution]

As you go through the Home Office section of your Schedule C, you should several questions, first to qualify that you can claim a home office, then the details about the home office, and then the actual expenses related to the home office.  It is the details about the home office that is probably causing the issue with your return.  Look for the following questions, each on a separate input screen:

• When did you start using this home office?
• Do you use space in this home to store inventory or product samples?
• How big is this home office?
• Business conducted in home office
• How did you enter home office expenses for 2023?

The question on the page titled Business conducted in home office is the key to the simplified office expense calculation and the situation you described above.  If you have not entered a value on that page, or if you do not see that page as you go through the Home Office section, then you will not be able to use the simplified method because your business will not show a profit even if there is one.

Please revisit the Home Office section of your return and look for the Business conducted in home office page.  If this page simply does not come up for you, but all of the others shown above did, please respond with which version of TurboTax you are using (online, desktop, Mac and Deluxe, Premier, Home and Business) so that we may investigate this further.

[yshin21]

Thank you for your help. In this particular case, when I changed the answer to the "Business Conducted in home office" question ("Enter the percentage of time...") to 100 percent, the entries became correct. I'm using a Windows Desktop version of TT Deluxe 2024.

[AnnetteB6]

That is good to hear.  I appreciate the confirmation that it is working for you.

Just keep in mind that if you do not conduct all of your business in the home office, then you should enter the percentage accordingly.  But, for a number of users, that particular entry has been the key to what appears to be a bug when it is not.

@yshin21 

[yshin21]

@AnnetteB6 

Thank you. Now that I look at Form 8829 Worksheet, I understand the issue better. I appreciate your help.

[jtmoods]

I'm getting a similar but slightly different error.  On Form 8829 the Simplified Method Smart Worksheet line A says "Gross income limitation."  It doesn't tell me where it is getting the number that it puts there, but it would seem that it would be taking it from Schedule C, Line 29, as that number represents the net income (profit) from my business.   But it seems to be taking that number from Schedule C, Line 28 (multiplied by -1), which is the total expenses from my business, which makes no sense at all.  Why would my gross income limitation be the amount of money I spend to operate my business, excluding any revenue?  (I'm pretty sure that it's taking the number from Schedule C, Line 28, because when I make changes to any of my business expenses, the number in the worksheet line A always matches it.)

Sadly, I can't override the number in the Simplified Method Smart Worksheet line A, so TurboTax tells me that I'm unable to deduct my home office expenses "because the net profit for your business was zero or less, which means you can't get the home office deduction."  But the profit from my business is actually greater than 0 (yay!) and sitting right there in Schedule C, Line 29 -- I just can't get TurboTax to use that number!

I'm on a mac using TurboTax Premier download and see this information in the About screen "Application: 2024.r19.022" and "Build Date: Feb 18, 2025 at 11:56:20 PM"

[AnnetteB6]

This experience was submitted to the developers for further investigation.  

In the meantime, as some users have discovered and shared, Forms Mode can be used to correct the issue.  Use these steps:

• Click Forms on the top row of TurboTax.
• Go to Form 8829.
• Scroll to the section titled Line 8 Calculation Smart Worksheet and enter your percent of business use of the home office on line B.
• Click Step-by-Step at the top of the screen to go back to the input screens.

@jtmoods 

[davem755]

My TT does not have a Business conducted in home office  page as shown in your sequence of pages but entering 100% on item B of the Lin8 Calculation Smart Worksheet on Form 8829 worked. Thank you.

[jheasly1]

I had the same problem tho I was entering actual business expenses. Turbo Tax showed the amount from Sched C line 28 in Form 8829 line 8 times negative one. This caused the amount that would have qualified as home office expense to be carried over for 2025. The workaround in the Form 8829 line 8 worksheet worked for me, thank you for that!