Form 7206: SE Health insurance deduction : Keogh EP contribution must be entered

[AGP11]

I entered a manual SEP contribution (under the maximum) as part of the interview process. I did not enter any values in the Keogh SEP field, but during final review it's throwing an error: Schedule C (my company)  -- Form 7206: SE Health insurance deduction : Keogh EP contribution must be entered.

Why is this happening and how do I resolve. I'm on TT desktop for mac.

Thanks!

[DaveF1006]

Try these suggestions to see if this will clear the issue.

Option 1: The Forms Mode Fix (Recommended)

1. Go to forms. 
2. In the list of forms on the left, find and click on Form 7206 (or the Self-Employed Health Ins Wks).
3. Look for the line labeled Keogh/SEP/SIMPLE contribution (usually in the section calculating the limit).
4. If it is highlighted in red, manually enter the amount of the SEP contribution you made.
5. Click Errors at the top or run the Check It Over (Review) again. The red highlight should disappear.

Option 2: The Interview Fix

If you prefer the step-by-step method, you need to ensure the SEP contribution is "attached" to your Schedule C business:

1. Go to Business > Business Income and Expenses > Edit your Schedule C.
2. Look for Less Common Expenses or Self-Employed Retirement.
3. Ensure you navigate through the Individual Retirement Plans section here, rather than just the general "Deductions & Credits" tab.
4. The software needs to see the SEP contribution associated specifically with that Schedule C so it can flow onto Form 7206.

As an FYI, Form 7206 is a relatively new standalone form (it replaced a worksheet in 2023). If you find that the software is still being resistent, try deleting Form 7206 entirely from the Forms list, then going back through the "Self-Employed Health Insurance" interview section. This often clears "stuck" data fields that cause these validation errors.

[AGP11]

Thanks Dave. That is very helpful. Do I need to split the SEP contribution between my two schedule Cs (I have two separate businesses and the SEP contribution is calculated per the total earnings of both businesses) 

This resulted in two issues.

1. how to assign the contribution to the business — which you have resolved.

2. Only one  business shows up to assign the contribution. How do you apply the contribution across two businesses, how is the split calculated, or does it not matter and you need only apply the total mixed contribution to one business under a schedule C?

many thanks!

[DaveF1006]

No, don't split split a SEP contribution between Schedule C’s. You enter the full SEP contribution once, tied to either Schedule C, and TurboTax will correctly compute the deduction across both businesses because the SEP limit is based on combined net self‑employment earnings, not per‑business allocations.

A SEP IRA is one plan for you as an individual, not one plan per business. Even if you have multiple Schedule C businesses, the IRS treats you as one self‑employed taxpayer with a single deduction based on your combined earnings across your businesses.