Turbo Tax not adding my business expenses to my adjusted gross income

[isunwoo]

I have 42,823 in business expenses, and for some reason it stopped adding that to my AGI.

It was saying I was getting thousands back from Federal and State, but now it's saying I owe instead, and I overpaid my Roth IRA contribution. 

Please help!

[MindyB · Accepted solution]

There are a couple of possibilities that could be causing this.  

First, go to the self-employed section, and review the info about the business.  Under Other Situations, Actively participated in this work needs to be "Yes", if that is accurate for the loss to be deductible.

Next, go to Uncommon situations at the bottom of the screen that shows your Expenses and Income (also in the self-employed section).  In the interview, you'll be asked How much of your investment in this activity is at risk?  All of my investment in this activity is at risk is the answer, that if accurate, should not cause a limitation.

[isunwoo]

Yes it was that "Risk" question! But I could not return to change it, so I ended up wiping all my info and starting all over again :(

[VolvoGirl]

If you get stuck on where to change the At Risk box on Schedule C line 32 here are my old notes. Hopefully they still work or will get you close.

Go back to your Self-Employment Income. Click on Edit to review your business entries. Then scroll down to Uncommon Situations, click Edit and check or uncheck the box. If your investment is at risk, don't check the box. You may need to delete Form 6198 if you had the box checked and are now unchecking it. How to delete forms https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-forms/view-delete-forms-turbotax-onl...

You can get back to the question about your business investment being at risk by going to the Schedule C and finding the Final Details > Special Situations section (if using TurboTax Home and Business) or the Uncommon Situations section (if using TurboTax Online). One user said…. Scroll to the bottom of the screen until you see the Uncommon Situations section, then click Start or Edit beside Carryovers, limitations, at risk information.

Within those sections, there will be a check-box to indicate 'I have money invested in this business that I'm not at risk of losing; that is, certain cash, property, or borrowed amounts that are protected from loss.' Uncheck that box if your investment in your business is not at risk.