I am using Self employed. I have 0 income with expenses but the software wont let me deduct my home office with 0 income. How to enter?

[alittletf]

I had a business in 2020 with 0 income but I had some overhead related to server hosting/database etc.  I have it registered with an EIN and everything. 

I am going through the Self Employed section of Income & Expenses and in the section 'Other self-employed income` I enter in cash with $0. When I go back to enter my home office deduction for 99sqft, it wont deduct anything. It keeps sending me to the "Before we calculate this deduction, we need to get your income info. 

In the simplified method calculated FAQ, there is nothing related to income requirements in order to deduct a home office. 

What am I doing wrong here? 

[AnnetteB6]

There is a gross income limitation for claiming a home office no matter which method is used to calculate the home office expense.  If there is no gross income for the business, then the home office deduction is disallowed.

See the following IRS FAQs - Simplified Method for Home Office Deduction for more information.  Go specifically to the Gross Income Limitation on the Amount of Deductions section for details.

[alittletf]

Well that sucks! I do however appreciate you taking the time to reply to me! 

[fanfare]

you can only take deductions against income. That's only reasonable.

[alittletf]

I am a sole proprietor and I have income from other sources. I was under the impression I could write off business expenses against income I made elsewhere. 

[VolvoGirl]

If you are not showing a loss on Schedule C.

Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year.  And you have to answer yes to both questions about exclusive and regular use, not just one.  The area of your home office must be used regularly and exclusively for business to deduct it.

Or you checked the box on 32b saying Some Investment is Not at Risk.

If you have money not at risk you can not take a loss on schedule C. If you don't know what it means then probably All your Investment is at Risk (check Box 32a). It means you are using your own money for the business.  People usually check the wrong box.