NY Non-resident SE Health Insurance Allocation

[rgenuser8]

Hello - I am filing jointly with my wife for the 2019 season for the first time (we got married in June). My wife has a schedule C business that earns 100% of its income from NY, and we are CT residents. When completing the IT-203 nonresident return, Turbotax asks me to allocate my wife's self-employed health insurance premiums as either NY or non-NY. Prior to getting married, my wife obtained her health insurance through the CT State exchange. So while 100% of her schedule C income is NY-sourced, I am unsure about deducting her SE premiums on the NY allocation. I appreciate any advice!

[DavidS127]

Where your wife purchased her self-employed health insurance doesn't matter, as long as neither of you were eligible to participate in an employer-subsidized health plan.

If your wife's self-employed health insurance is associated with her NY income, it should be allocated there.  That way the deduction is "matched up" with the income.

The TurboTax article at this link provides more information.

[rgenuser8]

Thank you! That was my inclination, but wasn't sure. I was eligible for an employer sponsored program, and as soon as we were married I added her to my insurance. I would think the costs she had to pay before we were married are still eligible though.

Thanks again!