For the last 4 years, my self-employed wife did work at home, using part of our home. For the last 3 yrs, TurboTax has said we can't take the home office deduction. Why?

Forum|Forum|1 year ago
January 17, 2025
1 reply
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The space where my wife works at home is used only for her business. I have asked an accountant and was told we should have qualified for this deduction. My wife works 60 hours a week and spends about 30 hours working in her home office.

Best answer by VolvoGirl

Does she have a Net Profit or 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 Schedule C 32b saying Some Investment is Not at Risk.

VolvoGirlAnswer

Employee

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

cindybejarano

Your response to this post fit with the post I submitted last night and I have not received any response on my post. The one issue I have with it is the software is that for me on Premier 2024, the software is pulling Schedule C line 28 which is total expenses to the calculation worksheet and showing a loss and not line 29 which is tentative profit or loss. I am showing over $16,000 profit but the program states I can't take the home office deduction because of a net loss. Can you advise me?

DianeW777

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions:

TurboTax Online:

Open your return -Go to the menu panel on the left side of your return and select Tax Tools.

Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.

TurboTax Desktop:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

Click on Online in the top left menu of TurboTax CD/Download for Windows
Select 'Send Tax File to Agent'
Write down or send an image of your token number and state then place in this issue.
We can then review your exact scenario for a solution.
Please also tell us any states included in the return. This is necessary for us to view the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@cindybejarano

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