Yes - move the rug closer to the tv and move the couch closer.

I can only move the rug about 8 inches forward before the front legs come off of it. What do you think about rotating the 9x12 rug in the other direction? That would fill most of the empty floor space in front of the TV but would only leave about 9 inches of rug on either side of the sofa.

So, if the sofa not fully sitting on the rug already, then just slide the rug out completely and put right before the front legs. Don’t be afraid of taking it outside the sofa area, there is no set in stone rule for that. And you don’t have to have it all the way to the TV, meeting another wall (unless you want it so, then you need a larger rug).
Turning the rug by 90degrees is not going to look good because the area by the window will have a large bare spot. And the room itself looks more rectangular shaped to me, at least on this picture, so you need to put the rug in the same way as the room goes (longer side along longer wall), otherwise it may put the whole room off balance.

What's the distance between the TV and sofa now? How large of a TV will you be purchasing? There is a formula to use about how far away to sit from what size TV. I can't remember it but I'm sure you can easily google it.

Yes to open space for dancing around in!

DomaVita Design- Interesting! The room is 15’6” x 16’5” with the longer wall being the wall of windows. So if the longer side of the rug is supposed to be on the longer wall then maybe that is why the room looks off! I’m just worried that if I rotate the rug it will look funny only having 9” of rug sticking out on each side of the sofa.

Kendrah- There is almost 12’ of space between the front of sofa and the TV.

Some practical notes:

If teens are going to eat on the sofa, move the rug so that there's bare floor between the sofa and coffee table or ottoman. Spilled food on bare floors can be wiped up quickly, a beige rug is much more work to clean.

A coffee table is a cinch to wipe off, a fabric covered ottoman is not. A removable, washable slipcover for an ottoman is a good idea.

The sofa can be placed farther out from the wall so that your vacuum cleaner will fit behind it, about a foot from the wall, not six inches.

IMO ask the kids this is their space . Get the biggest washable rug that can fit in your washer who cares if the feet of the soaf are on the rug pretty sure the kids don't care and much easier to roll up for dancing.

Just a vote is to nix the overheads and add a lamp or 2 with smart bulbs that have an app - my teens created all of these different lighting “scenes” for movie watching, hanging out etc - inexpensive and super fun (+ a good portable speaker)

With such a light rug+teenagers+food +drinks, I’d butt the rug right up to the console so there is more flooring by couch/table and rug may get a bit more longevity. If they don’t find the floor cushions practical or comfortable, they might like bean bags and not sure an ottoman is a good choice as a coffee table. Maybe take a look on Marketplace for something sturdy and practical.

Why not try adding a coffee table, some side tables, and some fluffy pillows. Please see these designs of ours below for more ideas.

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No rug, but add gaming chairs and floor poufs. Keep a rug handy to roll out for sleepovers.

Try moving the sofa and rug closer to the TV. Then you could put a sofa table, or a small sitting area behind the sofa. You could also look at poufs, bean bags, and some fluffy big pillows to add around. Maybe look at some side tables and a coffee table as well.

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All great suggestions. I don’t think a white rug is very practical - get a patterned washable rug. I am mystified about the draperies - why only covering some of the windows?

Its the rug thats off, you could put a sofa table behind the couch to bring it out a bit, but also give somewhere to put lamps, drinks etc. You could try putting the cubby thing behind it too, and get something a little more "grown up" for the tv stand. Also white carpet and teenagers feels like a bad idea lol, Something with a pattern might help the room as well.

I'd seriously consider putting in carpet squares in that space so that if any of the squares get damages/stained, it can easily be replaced. Put in something with a bit of color to liven it up. These are just examples; get some that reflect the right color scheme for your room:

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