In Schedule C, line 30, how to enter the rent I paid as home office expenses? TurboxTax 2023 has bug and Error.

Forum|Forum|1 year ago
October 8, 2024
2 replies
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It seems that TurboTax has a bug, I received a form 1099-NEC with 8K income in Box 1. In Business Income and Expenses (Sch C) Section, If I use the step-by-step method, TurboTax enters into a dead loop, It keeps asking me if I have any 1099-MISC income, I click 'No", then it asks me "Did I get a 1099-K"? I click "No", then it asks me 1099-MISC again, I can't get out of this dead loop to enter the rent I paid as expenses.

So, I go to the FORM Method, my income from 1099-NEC is $8000, my other expenses(excluding the rent) is $1000. In Schedule C, Line 30, I click QuickZoom to Form 8829, In Simplified Method Smart Worksheet, Line A, Gross Income Limitation, it shows negative -1000 automatically. This makes me unable to enter any rent I paid as expense for home office. The negative -1000 in Line A is incorrect, it should be $8000-$1000=$7000.

I don't know why TurboTax has such bug and error?

Anybody sees the same problem in TurboTax Premier?

Best answer by rjs

Hi RJS,

You are the expert. Thank you very much for your reply.

But this is a TurboTax bug or error. here is the answer to your questions:

I didn't sell any business property at a loss, my Form 4797 is completely empty.

Part II of my Form 8829 is also empty. Same for line 8 of Part II.

TurboTax takes my income of 8,000 from 1099-NEC as zero, and reduce my other expense from 0 to get -1,000.

I did carry the stock loss from 2022 in schedule D, but I don't think this should impact my business income from 1099-NEC.

@yonghai

"Part II of my Form 8829 is also empty. Same for line 8 of Part II."

I'm not referring to Part II of Form 8829. I'm talking about Part II of the Form 8829 Worksheet. That's a different form. Please reread my previous reply about how to see the Form 8829 Worksheet.

In Part II of the Form 8829 Worksheet (not Form 8829):

Is line 1 $8,000?
Is line 2 100%?
Is line 6 $1,000?
What are the amounts on lines 7, 8, and 9?

"TurboTax takes my income of 8,000 from 1099-NEC as zero"

In an earlier post you said that Schedule C line 1 is $8,000. I assume that comes from the 1099-NEC. So why do you say that TurboTax takes the income from the 1099-NEC as zero?

rjs

Employee

The 1099-MISC/1099-K loop is a known bug in a recent update. The bug has been reported to TurboTax and they are working on it.

Here is a workaround that has worked for a number of other people. Give it a try. It should let you continue with the Schedule C interview.

https://ttlc.intuit.com/community/taxes/discussion/re-when-i-select-no-for-the-question-did-you-receive-a-1099-misc-form-no-for-the-subsequent-1099-k/01/3390617/highlight/true#M1247654

yonghaiAuthor

Employee

In my case, my gross income is $8000, my other expense is $1000, so my Gross Income Limitation should be $7000, but TurboTax shows -$1000, so I can't claim any rent I paid as expenses.

In the interview, TurboTax says "Because the net profits for your business was zero or less, which means you can't get the home office deduction".

This is really weird that TurboTax has this error...

VolvoGirl

Employee

Did you look at the actual Schedule C and see if it’s right? Where is the 1,000 expenses showing up? Is the gross income on line 1? Maybe you started another Schedule C by mistake. Delete one and add the info to one Schedule C.

frazerloomis

I’m having the same problem and it’s a little late for them to be having bugs this major in the program….

rjs

Employee

@frazerloomis

Please see my reply to your other post about entering expenses, and reply in that thread with the requested information. Please keep all the discussion of your problem in one place, under the separate question that you posted. When information is scattered in multiple threads it's confusing and hard to follow, and hard to see the whole picture.

Have you entered any expenses? This thread is about the calculation of the home office deduction after you have entered expenses. Do you really have the same problem? Your other post doesn't sound like it's the same.