Home office deduction not deducting?

[leebee]

Self employed; turbotax says I've earned $1,320 deduction for my own office. But this deduction never reduced the taxes due either at the start of the process or now at the end. At this point, that would make the amount of taxes I owe negligible. But even before doing the other deductions, it was never taken out of the taxes like other deductions were.

What's up?

[AmyC]

The home office can only reduce business income, it cannot create more of a loss. If you had no or negative business income, this would create the scenario you describe.

[Carl]

Business expenses, including home office expenses and deductions, are only deductible from business income. Once your deductible busienss expenses gets your taxable business income to zero, that's it. You can't take any more business deductions. Excess deductions get carried foward to the next tax year where they are deducted *if* you have the taxable business income to deduct them from.