My total expenses are $10,000 higher than is showing in the summary. Each category should be 100% deductible, how do I see what is going on?

[jmerrick]

I have Home Office, Communications, Supplies, Health insurance premiums and a some Other miscellaneous expenses (small pieces of equipment under $2,500). It looks like all of these things should be 100% deductible however Turbo Tax is only deducting 66% of the total from the income.

[DianeW777 · Accepted solution]

It depends. I advise you to print your return to review each entry on your Schedule C before you file. This will give you a good understanding of your entries and the net profit. 

You have access to all forms when you choose to print your return in TurboTax Online/Mobile.  However you are required to pay before printing, but do not have to file until you are ready.

• Can I print a copy of my return in TurboTax Online before filing?

If you are using TurboTax Desktop you can switch to Forms and review all forms and worksheets.

Please update here if you have additional questions and we will help.

[VolvoGirl]

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.

[jmerrick]

Thanks. It turns out it was the Health Insurance premiums; TurboTax apparently doesn't count them as an expense.

[VolvoGirl]

@jmerrick   Right.  Self-employed health insurance deduction goes on Schedule 1 line 17 (which goes to 1040 line 10), as long as the expense is not greater than your net self-employment income. If it does exceed your net self-employment income it gets split automatically. An amount equal to your net self-employment income goes on Schedule 1 and the remainder gets added in to medical expenses on Schedule A.

It will not show up on schedule C and not reduce any SE Tax on a net profit. It just reduces your AGI if you itemize on Schedule A.