How do I edit the home office deduction? It gave me 90% based on 350sqft but didn't ask my total sqft, which is 1000. It should only be 35% based on form 8829 instruction

Note: Many filers use the simplified method because it does not require detailed calculations.  Beginning with 2013 tax returns, the IRS began offering a simplified option for claiming the deduction. This new method uses a prescribed rate multiplied by the allowable square footage used in the home.

• For 2020, the prescribed rate is $5 per square foot with a maximum of 300 square feet.

• If the office measures 150 square feet, for example, then the deduction would be $750 (150 x $5).
• The space must still be dedicated to business activities.

With either method, the qualification for the home office deduction is determined each year. Your eligibility may change from one year to the next. Finally, please note that only certain expenses such as rent, mortgage interest and property taxes qualify for the deduction, and the deduction is limited to $10,000.

To enter your home office expense along with other common business expenses:

1. Search for Schedule C and select the Jump to link.
2. If this is your first time entering info about your business, you’ll be asked some questions about your business. If you have already entered some info, click Edit next to your business.
3. When you reach the Your (type of work) Business screen, scroll down to the Business Expenses section, then select Start next to Home Office Expense and follow the screens to enter your info.

Your home office business deductions are based on either the percentage of your home used for the business or a simplified square footage calculation.

The most exact way to calculate the business percentage of your house is to measure the square footage devoted to your home office as a percentage of the total area of your home. If the office measures 150 square feet, for example, and the total area of the house is 1,200 square feet, your business percentage would be 12.5%.

An easier calculation is acceptable if the rooms in your home are all about the same size. In that case, you can figure out the business percentage by dividing the number of rooms used in your business by the total number of rooms in the house.

Special rules apply if you qualify for home office deductions under the day care exception to the exclusive-use test.

• Your business-use percentage must be reduced because the space is available for personal use part of the time.
• To do that, you compare the number of hours the child care business is operated, including preparation and cleanup time, to the total number of hours in the year (8,760).

Assume you use 40% of your house for a daycare business that operates 12 hours a day, five days a week for 50 weeks of the year.

• 12 hours x 5 days x 50 weeks = 3,000 hours per year.
• 3,000 hours ÷ 8,760 total hours in the year = 0.34 (34%) of available hours.
• 34% of available hours x 40% of the house used for business = 13.6% business write-off percentage.