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Business Use Percentage for Daycare

The Home Office Percentage (Business Use Percentage) for my home daycare is not being calculated corrected by Turbo Tax Home and Business.  I use 1400 sq ft of my 2800 sq ft home for the daycare.  I use my home 10 hours a day, 5 days per week for the day care.  In 2020, the daycare was not in operation for 116 days.  The Home Office Percentage should be calculated as follows : 366 days - 116 days = 250 days in which my home operated as daycare  ; 250 days x 10 hours/ day = 2500 hours that my home operated as a daycare in 2020. 

Total hours for 2020 = 366 days x 24 hours/day = 8784 hours.  2500 hours/8784 hours = 28.46% x 1400/2800 = 14.23%  However, Turbo Tax comes up with a home Office Percentage of  8.2%.  When I entered the correct information on the actual Form 8829, I got a review error saying I could not e-file with overridden information on that form.  How can this be corrected.  How can I report this problem directly to Turbo Tax.  I followed the directions given in the reply initially-Turbo Tax software is not calculating the percentage properly.

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Accepted Solutions

Business Use Percentage for Daycare

I spoke with a Turbo Tax expert who solved my issue.  The problem is the entry of the "Number of days the home was closed (Includes holidays, vacations, and other days the business was not operating)"  This number should not include weekends.  When I remove the weekend days, it calculates correctly.  The wording can be confusing as it indicates "and other days the business was not operating" which for me included the weekend.

 

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3 Replies
MarilynG1
Expert Alumni

Business Use Percentage for Daycare

Click this link for more info on Calculating Day Care Use Percentage

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Business Use Percentage for Daycare

I followed everything indicated in your response.  Turbo tax is not calculating the percentage correctly.

 

Business Use Percentage for Daycare

I spoke with a Turbo Tax expert who solved my issue.  The problem is the entry of the "Number of days the home was closed (Includes holidays, vacations, and other days the business was not operating)"  This number should not include weekends.  When I remove the weekend days, it calculates correctly.  The wording can be confusing as it indicates "and other days the business was not operating" which for me included the weekend.

 

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