Your calculation for the Home Office deduction is screwed up. When I itemize it I only get a return of $1039 and a carryover of $3068. Both amounts are wrong!

[pokey_111260]

Is Turbo Tax's calculation for the Home Office deduction screwed up. When I itemize it I only get a return of $1039 and a carryover of $3068. Both amounts are wrong! I can't figure out why it doesn't return a number closer to last years numbers, all other entries are similar.

[xmasbaby0 · Accepted solution]

Home office is not an itemized deduction for Schedule A.   It is a business expense on Schedule C if you are self-employed.  If you are a W-2 employee you cannot deduct a home office on a federal tax return.

W-2 employees cannot deduct job-related expenses on a federal return.  Job-related expenses were eliminated as a federal deduction for W-2 employees by the tax laws that changed for 2018 and beyond.  Your state tax laws might be different in AL, AR, CA, HI, MN, NY or PA.

If you live in a state that lets you deduct job-related expenses, the information will flow from your federal return  to the state return, so enter it in Federal>Deductions and Credits>Employment Expenses>Job-Related Expenses