Question about Form 2106 - Line 11

[jwi4o2d]

Hello!
I'm filing using Turbotax Home & Business and got the following alert:

"Form 2106 Adjustments Wks - Employee Home Office Wks: Line 11 must be entered."

They're asking for Line 11. I’m filing Form 2106 because I'm a qualified performing artist.

My question is: which info do I enter Line 11:

The amount of my NET self-employed income conducted at home office (after deductions), or,

the GROSS of all my self-employed income conducted at home office?

Thanks for any insight on this!

[JeffreyR77]

This amount is the gross self-employed income you generate from this activity.

[jwi4o2d]

Thanks!

Re: Line 12 "percent of wages from the business use of this home":

If, for example, 30% of my home space is used as my home office, do I write 30% on Line 12?

Or do I enter 100% on Line 12 because I indicated elsewhere on my taxes what percentage of my home is used for business, and so I use 100% of that space?

[JeffreyR77]

Percent of wages should be zero as this is all related to your self-employed activity.  There is no deduction allowed for business use of home for an employee.

[jwi4o2d]

To clarify- I'm using the home-office space solely for my self-employed business - I'm confused why that would make the business use 0?

[JoannaB2]

The Form 2106, Employee Business Expenses, is used by employee to deduct ordinary and necessary expenses related to their job.  If you're self-employed and wanted to deduct expenses for your home office, you have to enter the expenses on  "Business Use of Home" on Schedule C 

The line 11 of Form 1040 is your adjusted gross income.  Adjusted Gross Income (AGI) is gross income minus adjustments to income. Gross income includes wages, dividends, capital gains, business income, retirement distributions, and other income; while adjustments to Income include Educator expenses, Student loan interest, Alimony payments or contributions to a retirement account. 

Your AGI can not be more than your total gross Income on you return and in some cases may be lower.

[jwi4o2d]

I should have made this clear when I posed the question earlier. The LINE 11 and LINE 12 I'm referring to is on the EMPLOYEE HOME OFFICE WORKSHEET that Turbotax is making me fill out. It's under "PART III: FIGURE YOUR ALLOWABLE DEDUCTION"

This is what I'm seeing on the worksheet (the "lines" I was referring to in my posts above):

11. Total wages from this business

12. Percent of wages from the business use of this home

13. Wages from the business use of home. Multiply line 11 by line 12.

14. Gain from business use of home shown on Schedule D or Form 4797.

This is all under the Form 2106 Adjustment Worksheet tab.

Anyone have any advice? Thanks!

[DawnC]

Yes, use 100% as the percentage of wages.  Form 2106 is the correct form to use if you are a qualified performing artist who reports W-2 wages.   But if you use Schedule C to report your self-employment income, you would skip Form 2106 and enter all of your expenses on the same Schedule C.   There is a separate form for Home Office deductions for Schedule C.    But if you are receiving wages on a W-2, use Form 2106.