As you go through your tax return entering income first and
then deductions, you will encounter the information for your business before
mortgage interest.
When you go through the business section of your return, first
you will specify that your business is a daycare. Then, you will designate portions of your
home as your “home office”. There are
specific questions related to what areas of your home are dedicated to your
business and what areas are used partially for your business, since your
business is a daycare.
Taking the step-by-step approach to entering your home
office expenses, you will see a series of questions about your “home office”
expenses. Each step of the way will give
you guidance about whether to enter the total amount or a prorated amount if
the deduction can be split between your business and personal use. In many cases, TurboTax will do the math for
you and the information on your screen will remind you of that.
Part of the questions you see will be about your home
mortgage interest. The instructions on
the screen state that you should enter the total
mortgage interest amount in the business section of your tax return. TurboTax will do the math to allocate the
mortgage interest between your business and personal deductions. You will not need to enter it again when you
go to the deductions section of the tax return.
As you continue through the return, there will be
information on the screen about what portion is used for your business and what
portion is transferred to your personal deductions.
Take a look at the picture below for a visual reference of
the input screen you should see within the business section of your
return.
