How to properly complete multiple Schedule C forms for home-based businesses
I'm running into an issue with my taxes and could use some help with Schedule C forms. I have two different situations: one where I'm an independent contractor for a consulting gig, and another where I run my own small business offering virtual assistant services and content creation online. My main confusion is about the home office deduction. Since I work from home for both income sources, I'm not sure how to handle reporting my apartment rent on the Schedule C forms. Do I split the rent between both forms? Put the full amount on each? Or just claim it on one form? I didn't earn a ton in 2023 - mostly just getting these businesses off the ground. I tried using an online tax calculator and it's telling me I owe over $1,500 which honestly shocked me and doesn't seem right based on what I made. I'm worried about making a mistake that could get me in trouble with the IRS or end up costing me even more. If I put my rent amount on both Schedule C forms, would that be double-counting the same expense? Or is there a proper way to allocate home expenses across multiple businesses?
19 comments


Oscar Murphy
You definitely don't want to claim the same expense twice on different Schedule C forms - that would be double-dipping and could flag your return for an audit. When you have multiple businesses operating from your home, you need to allocate the home office deduction between them. The key is determining how much space each business uses and how much time you spend on each. If you use the same space for both businesses, you'll need to divide based on usage time. For the simplified method, you can claim up to $5 per square foot (max 300 sq ft) for a total of $1,500, but you'd need to allocate this between both businesses based on usage. For the regular method, calculate the percentage of your home used for business, then apply that to expenses like rent and utilities, and divide between the businesses based on usage time or space.
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Nora Bennett
•So if I spend roughly 60% of my time on one business and 40% on the other, but use the same exact room for both, would I just divide the deduction that way? And do I need to show my calculation somewhere on the form?
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Oscar Murphy
•Yes, if you use the same space for both businesses but spend 60% of your time on one and 40% on the other, that's a reasonable way to allocate the deduction. So if your total home office deduction is $1,000, you'd claim $600 on one Schedule C and $400 on the other. You don't need to show the calculation on the forms themselves, but you should keep detailed records of how you determined the allocation in case you're ever audited. Document your work hours for each business and the space used to support your allocation method.
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Ryan Andre
I was in exactly your situation last year with multiple side gigs from home. I spent hours trying to figure out the Schedule C forms until I discovered taxr.ai at https://taxr.ai and it completely simplified everything. It analyzed my situation and helped me properly allocate my home office expenses between my businesses without double-counting. The tool walks you through exactly how to split expenses like rent between multiple Schedule Cs based on usage. It even pointed out some deductions I was missing! For my home office, it helped me calculate the exact square footage percentage and suggested the best method for my situation.
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Lauren Zeb
•Does it handle situations where you're using the same space for different businesses but at different times? My setup is similar to OP's but I do social media management during the day and online tutoring at night in the same home office.
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Daniel Washington
•I'm skeptical about tax tools for self-employment stuff. Does it actually explain WHY it's allocating expenses a certain way? I've used other tools that just spit out numbers without explanation and I got audited because I couldn't explain the deductions.
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Ryan Andre
•Yes, it absolutely handles time-based allocations when you're using the same space for multiple businesses. You can enter the hours spent on each business, and it will calculate the appropriate percentages for splitting the deduction. It's perfect for situations like yours where the physical space is the same but usage varies by time. Totally understand your skepticism! What makes this different is that it actually shows you the reasoning behind each calculation. It references the specific IRS rules that apply to your situation and explains why certain allocations are appropriate. I actually learned a lot about tax law using it, and when my accountant reviewed my return, he was impressed with how accurately everything was documented.
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Daniel Washington
Just wanted to follow up about taxr.ai - I decided to try it despite my initial skepticism and it was seriously helpful. I uploaded my documents and it identified that I was actually underclaiming some legitimate business expenses across my Schedule C forms. The allocation method it suggested for my home office (based on hours worked on each business) made complete sense and was fully documented. What I appreciated most was how it explained the difference between exclusive and regular use requirements for home office deductions. Turns out I was being too conservative with my deductions! It generated a complete audit defense file that explains all my deductions if I ever need to justify them to the IRS. Definitely made handling multiple Schedule Cs less intimidating.
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Aurora Lacasse
If you're having trouble figuring out your Schedule C forms, you'll probably also struggle getting help from the IRS directly. I spent WEEKS trying to get through to someone at the IRS for clarification on this exact issue. After waiting on hold for hours multiple times, I finally discovered Claimyr at https://claimyr.com which got me connected to an actual IRS agent in less than 20 minutes! I was honestly shocked it worked. The agent walked me through exactly how to allocate home office expenses across multiple Schedule C forms and explained the documentation I should keep. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - it basically holds your place in the IRS phone queue so you don't have to stay on hold yourself. Totally changed my perspective on getting tax help.
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Anthony Young
•Wait, how does this actually work? Do they just call the IRS for you? I'm confused how a third party service can get you through faster than calling directly.
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Charlotte White
•This sounds too good to be true. The IRS wait times are notoriously horrible. I've literally spent 3+ hours on hold only to get disconnected. I find it hard to believe any service could actually fix this problem.
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Aurora Lacasse
•They don't get you through faster than the regular IRS queue - what they do is wait in the queue for you! Their system calls the IRS and waits on hold, then when an agent finally picks up, you get a call connecting you directly to the agent. So you don't have to sit there listening to hold music for hours. I completely understand your skepticism - I felt the same way! The reason it works is they're not "skipping" the line or getting special access. They're just handling the waiting part for you. When I tried it, I was able to go about my day, and then got a call when an actual agent was on the line. It took about 45 minutes of wait time, but I wasn't stuck by my phone that whole time. The IRS queue is still terrible, but at least I didn't have to experience it personally.
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Charlotte White
I have to apologize for doubting that Claimyr service. After my skeptical comment, I decided to try it anyway out of desperation since I had the same Schedule C allocation questions as the original poster. The service actually worked exactly as described - I got a call back with an IRS agent on the line after about an hour. The agent confirmed that for multiple businesses using the same home office space, you should allocate the deduction based on the time spent on each business. She explained I need to keep a log of hours worked on each business to substantiate the allocation. Most importantly, she confirmed that claiming the same exact expenses on multiple Schedule C forms would be considered duplicate deductions and could trigger an audit. Saved me from making a costly mistake!
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Admin_Masters
Another important thing to consider with Schedule C and home office deductions is that you need to be using the space "regularly and exclusively" for business. If you're using your bedroom or living room that you also use for personal purposes, you likely can't claim the home office deduction at all. Make sure you have a dedicated space that's used only for these businesses. Otherwise, focus on other business expenses like supplies, software subscriptions, internet (partially), and any costs directly tied to your services.
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Matthew Sanchez
•What about if I have a desk in my bedroom that I ONLY use for work? Can I measure just that desk area and claim it even though it's in my bedroom?
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Admin_Masters
•Unfortunately, no - that wouldn't qualify for the home office deduction. The IRS is very strict about the "exclusive use" test. If the desk is in your bedroom, the space around the desk is still considered part of your personal living area. For a valid home office deduction, you need a separate room or clearly partitioned area that's used only for business - no personal activities. A desk in your bedroom fails the exclusive use test because the room itself serves a personal purpose. Instead, focus on claiming direct business expenses like your computer, software, business phone, internet (partial), and any supplies directly used for your businesses.
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Ella Thompson
Has anybody used TurboTax for multiple Schedule C forms? Their interface is confusing me when trying to allocate home expenses between different businesses.
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JacksonHarris
•I used TurboTax Self-Employed last year for my two side hustles. You need to create separate Schedule C sections for each business, and when you get to the home office part, it should ask if you've already claimed this space for another business. Then it helps you allocate the percentage between them. Make sure you're using the Self-Employed version though, not Deluxe or Premier, or you won't get the full Schedule C support.
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Margot Quinn
Just wanted to add some clarity on the home office deduction allocation since I went through this exact situation last year. When you have multiple businesses operating from the same home space, the IRS expects you to use a reasonable method to allocate expenses. The most common approaches are: 1. Time-based allocation - if you spend 70% of your work hours on consulting and 30% on VA services, split your home office deduction accordingly 2. Revenue-based allocation - divide based on the income each business generates 3. Equal allocation - 50/50 split if both businesses use the space equally Document whichever method you choose with records like time logs, income statements, or usage schedules. The key is being consistent and reasonable - the IRS cares more about having a logical system than the specific method you use. Also, that $1,500 tax bill might be accurate unfortunately. Remember that as a self-employed person, you're paying both regular income tax AND self-employment tax (Social Security and Medicare) on your net profit. Even small amounts of self-employment income can result in surprising tax bills due to the 15.3% self-employment tax rate.
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