I'm working on my Home Office (HO) deductions. On the first page, I entered my tax and other information for the entire home. When I get to the second page for HO only, there are conflicting instructions. First, it says, "Do not enter any expenses already entered on the previous page." However, in the tax section, it says, "If [user] paid real estate (property) taxes on [user's] entire home, enter this amount here and later go to Deductions and Credits..."
Am I truly supposed to enter them again on the HO only page? Or is this a bug with poor instructions? It makes a huge difference on my return.
Thank you.
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If you follow the order of entering information that TurboTax uses, you will enter your Schedule C and home office expenses before entering your Schedule A itemized deductions. This will allow the program to use proportional amount of the Whole Home expenses such as property tax as a Home Office expense. This calculation will be done in the Home Office section and the remaining 'personal' portion of the property tax will automatically be transferred to the Schedule A section of your return.
When you get to Schedule A, you will not enter the property tax again. Instead you will see messaging on the screen showing the amount that has been transferred from the Home Office section that is not being used as a Home Office expense.
So, enter this information into the Home Office section so that it can be taken into account, but be aware that if you already entered it in the Schedule A Itemized Deductions section that you may need to delete that entry so that it is not counted twice.
Sadly, this doesn't answer the question – I'm only talking about Schedule C (not A).
There are two screens when completing Schedule C: First, you enter information for your entire home. Then, you enter information for your home office only.
On that second page, there is a prompt to enter your taxes again for the entire home. Is this a bug? Should I really enter taxes again on the "Home office only" page?
Thank you for clarifying. This truly affects outcomes.
No, you would not enter the property taxes for the entire home in the section where you enter expenses only for the home office.
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