Home office

[pangho]

Hi TT community,

After I enter home office use as a percentage of the entire home utility, internet, etc.  the Fereal and State balance/due remains unchanged. Why? Is this because I have too lillte income? I am retiring and make about $20K in 2023. If this is the case, can I carry them over to the following year when I have higher income?

Thank you for any input in advance. I use Turbo Tax Home and Biz

Pang Ho 

[Vanessa A]

There are a few reasons you would not see a change after entering the home office deduction:

1. You made too little along with your other self-employed deductions, so the home office deduction did not make a change on your numbers.
2. Your regular income is already reduced to $0 after your standard deduction or itemized deductions.  The home office deduction will not change your SE Taxes, so if these are the only taxes you owe, the home office deduction would not have an affect.

No, you cannot carry over the home office deduction.  You can only take the deduction in the year of use. 

Taking Business Expense Deductions