Expenses were entered the same as prior years and were higher than 2020. Prior year deductions were around $2,000. 2021 deduction is $331. What would cause this when actual expenses were more?
OIH expenses are limited based on the net profit of the business ... review the Sch C and the form 8829. Any unallowed expenses are carried forward.
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.
Problem resolved somehow. After entering all my other business expenses and income, it recalculated the correct amount. Thanks for the responses.