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tgreenie
New Member

When calculating the simplified home office expense, the deduction is not calculated as described in the notes: 111 sq ft x $5. The deduction is $142, What am I missing?

 
3 Replies
KarenM90
Level 11

When calculating the simplified home office expense, the deduction is not calculated as described in the notes: 111 sq ft x $5. The deduction is $142, What am I missing?

It depends.  Please keep in mind that there are some limitations on the simplified deduction for Home Offices.  

 

The most common limitation is the gross income limitation.  Please see questions 15, 16 & 17 in the link below;

 

Simplified Home Office Deduction

 

 

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moasan
New Member

When calculating the simplified home office expense, the deduction is not calculated as described in the notes: 111 sq ft x $5. The deduction is $142, What am I missing?

I am having the same issue. How is Turbo Tax calculating the home office deduction if it is using the simplified method for home office deduction? I am well within the gross income limitation, but I am getting a different number from what Turbo Tax has computed. With a square footage of 110 x$5= 550, but I am getting $367. Any ideas? Even Form 8829, I am still getting a different number. 

Cynthiad66
Expert Alumni

When calculating the simplified home office expense, the deduction is not calculated as described in the notes: 111 sq ft x $5. The deduction is $142, What am I missing?

This new method uses a prescribed rate multiplied by the allowable square footage used in the home. For 2020, the prescribed rate is $5 per square foot with a maximum of 300 square feet. If the office measures 150 square feet, for example, then the deduction would be $750 (150 x $5).

 

I suggest deleting the deduction and re-entering after clearing cookies, history etc.

 

IRS' FAQ for Simplified Method for Deducting Home Office

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