That really is a problem in the fundamental design of the house.

Can you build a vestibule onto the front of the house? Or replace the door with a narrower one?

You have a split entry house. Thats the way, they always are, unless a porch is added on to the front and the door moved out to the porch, instead of where it is. The only thing you could do with what you have is possibly put in a new door with frame and open the door to the left instead of to the right. Although, then, it will be in the way of your downstairs stairs, although, still probably the best option. Another option would be to get a new door and frame, that opens to the outside, which isnt ideal either, as then, you could not have a storm door. I would prefer the first option, opening to the left since then, you would be able to carry things in, and go right up the stairs, to the kitchen, or other parts of the house. When the door is closed, you wont have it blocking anything. A family member has same entry and theirs does open to the left rather than the right, and it is definitely a much better option than what yours is.

IDK... maybe replacing the front door with a wider double?

Or get a door with the side window on the other side?

You could also redo the railing so the post is on the first step instead of starting on the floor.

You build out the front entry, or you live with it.

It misses the stair by four inches. You come in and you close the door, EVEN if you were heading up the stair.

You can make it more attractive, certainly, but that will not change the available inches: )

Here’s a couple of ideas on sprucing it up.

All of the above suggestions are valid especially pulling the newel back onto the first tread of the stair.

I appreciate all of these comments and ideas!~ Thanks so much for your time! I will put it on the first tread of the stair! Thanks again! Sheila