TurboTax does not allow home office deduction ...

[Bachatera]

In 2024, I worked as an independent consultant for 3 months, for which I received a 1099-NEC, worked from my home office 100% and have only $300 of business expense.  I plan to use standard home office deduction.  However, TurboTax does not allow me to get home office deduction because 'the net profit of your business was zero or less'.  This doesn't seem to make sense.  How do I fix it?  Thank you.

[AnnetteB6]

When this happens, it is usually due to a combination of your income attributable to the home office and your other business expenses wiping out any profit that could be reduced by the home office expense.  

Go back through the early questions of the home office section and double check your answers.  Remember that if you perform all of your work in the home office, then you would put 100% of your time was spent there for the 3 months that you used the home office.  

[Bachatera]

I triple checked all entries - they are correct. 

The problem is, when it comes to home office deduction, TurboTax pulls line 28 (expenses) and not line 29 (profit) 0n Schedule C, for Form 8829 Gross Income Limitation.  This makes the programs 'thinks' there is a net loss.  How do we correct this?  Alternatively, can we manually override From 8829 - Gross Income Limitation?

Thank you!

[PatriciaV]

The amount on Form 8829 Line 8 should be the same as Schedule C Line 29. If there is a loss on Line 29 or if your Home Office Expenses (Form 8829 Line 27) are more than the amount on Line 28, you may not have a reportable deduction for the current year.

Unused Home Office Deductions are carried forward to future years to be applied when your business has sufficient profit.

If you are certain the correct numbers are not shown on Form 8829, please post screenshots of both Schedule C Line 29 and Form 8829 Lines 15 - 36.

[Bachatera]

Thank you. 

I'm using the Simplified Method where Form 8829 Line A (Gross Income Limitation) pulls expenses, not tentative profit in Schedule C.  How do I fix it?

Form 8829 line 8 is blank.

[DawnC]

I am unable to duplicate this.   As requested above, can you provide screenshots of Schedule C, Lines 28 and 29?  And the Simplified Worksheet from Form 8829.    Also, what version of TurboTax are you using?    Home Office Deduction

The deduction can also be limited if your gross income from the business use of your home is less than your total business expenses. So, if you have a loss from your home-based business, your home office deduction might be reduced.

[Bachatera]

Hi @DawnC , thank you.  Please see screenshots below.  I used Premier - I asked on TurboTax Community and someone mentioned Premier is good.  

[ThomasM125]

It looks like the program isn't functioning properly. If you are using the desktop version of TurboTax, you should update the program by using the Online menu option and then Check for Updates. If you are using the online version of TurboTax, you should clear the cache on your computer and reboot. The procedure for that will vary depending on what internet browser you are using, but you can google how to do that for your browser and operating system you are using.

[Bachatera]

Hi @ThomasM125 , 

I 'checked for updates' and it still didn't fix the issue.  I see other posts on TT community - other people are having the same issue. 

As an alternative, can I manually override Form 8829 Simplified Worksheet - Line A to $37,760 (Schedule C, Line 29)?  Or, should I override it to $38,025 (Schedule C, Line 7 - Gross Income)? 

Thank you!

[ThomasM125]

I can't recommend you override an entry, as it will invalidate your TurboTax guarantee and not allow you to e-file your tax return. I'll check on your issue and post an update here as soon as I get one.

[Bachatera]

Hi @ThomasM125 ,

I'd really like to keep the TurboTax guarantee and e-file, and get all the deductions I'm entitled to.  These are all the reasons why we choose TurboTax.

I look forward to getting your updates on how TurboTax resolves this issue.

Thank you!