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lisaashbu
Level 1

How do I get Quicken SE to apply the Regular Method for calculating deductions home office expenses? It keeps defaulting to the Simplified Method and I'm unable to change it.

 
3 Comments 3
IamjuViel
QuickBooks Team

How do I get Quicken SE to apply the Regular Method for calculating deductions home office expenses? It keeps defaulting to the Simplified Method and I'm unable to change it.

Hello there, @lisaashbu.

 

Let me guide you in setting up your home office-related transactions.

 

You'd want to make sure to set up your Home Office square footage under Regular method. Here's how:

  1. Go to the Gear icon.
  2. Choose the Home Office Info.
  3. Set the Tax Year.
  4. Select the Regular Method tab.
  5. Enter your Home Office and the entire Home square footage.
  6. Click the Save button. 

Once completed, make sure to categorized your home office-related transactions are categorized properly. You can choose any of these expense categories:

  • Mortgage (home office) 
  • Mortgage interest (home office) Costs for rent or lease of your home when you have a home office. Rent or lease of office furniture or equipment should use the general RENT & LEASE category instead.
  • Homeowner/rental insurance
  • Rent and lease (home office)  Costs for homeowner’s or rental insurance when you have a home office. All other business insurance should use the general BUSINESS INSURANCE category instead.
  • Repairs and maintenance (home office) Costs for repair and upkeep of your home and/or home office, as long as it doesn’t add value. (Replacements or upgrades are considered assets instead.) General home repair and upkeep are proportionally deductible; repair and upkeep specifically for your home office is usually 100% deduction.
  • Property tax (home office) The cost of your property taxes if you have a home office, own your home, and pay property taxes on it.
  • Utilities (home office) Costs for utilities (phone, electricity, water) for your home when you have a home office. All other business utilities should use the general UTILITIES category instead.
  • Other home office expenses Costs for expenses for your home office that don’t fit into other home office categories. Examples might be neighborhood association dues or home security fees. 

You can read through these articles to help you manage your home office-related transactions:

Lastly, you'd want to consult with an accountant so you'd be guided in choosing the right Schedule C expense categories.

 

Always feel free to leave a comment below if you have other questions or concerns. I'm just a few clicks away.

lisaashbu
Level 1

How do I get Quicken SE to apply the Regular Method for calculating deductions home office expenses? It keeps defaulting to the Simplified Method and I'm unable to change it.

Hello @IamjuViel! I appreciate the detailed reply. =)

 

Yes, I have my home office transactions categorized correctly for a home office deduction. So, no worries there.

 

I am able to execute steps 1 - 6 below, and have done so several times. However, when Quicken SE calculates my taxes, it applies the Simplified Method and uses the standard deduction, no matter what I do. This is genuinely disappointing, since the Regular Method gives me a much higher deduction.

 

In 2019, I did use the Simplified Method, because I hadn't saved my utility receipts. Now, I'm ready to get that higher deduction and I have the receipts to back it up. I have repeatedly selected and saved the Regular Method after entering the square footage applicable to my home.

 

How can I get Quicken SE to use the Regular Method in tax calculation? Thank you!

IamjuViel
QuickBooks Team

How do I get Quicken SE to apply the Regular Method for calculating deductions home office expenses? It keeps defaulting to the Simplified Method and I'm unable to change it.

Let me share additional details, @lisaashbu.

 

Home Office related expenses are annual type of deductions. It's not included in the calculation of your quarterly estimated taxes. You'd have to itemized your home office deductions when filling your annual taxes.

 

Meanwhile, your estimated federal tax payments are based on your self-employed income, deductions, predicted future income for the year, and tax profile. Also, it covers all of your Social Security and Medicare taxes. You can read through this article for more detailed instructions: How QuickBooks Self-Employed calculates your self-employed taxes.

 

You might want to check out this article for more details about our QuickBooks Self-Employed taxes: 

On the other hand, just to clarify, are you using Quicken Self-Employed or QuickBooks Self-Employed? If its Quicken Self-Employed, I'd recommend contacting the dedicated customer care team for Quicken. They have specialist that can further assist you in reviewing your transactions. 

 

Feel free to reach out to us if you need anything else. Have a great day!

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