How do I allocate my $19,000 health insurance premiums between Schedule C income, Schedule E income, and to retired income of social security & investment income?

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I am retired from my original job, but I do have some part time jobs that I receive W-2s.  One of those jobs provided me a 1099-Misc income that flows into schedule C.  My schedule C net income is 3K, schedule E net income is a loss of 3K, my W-2s are $7K, my social security income is 20K and my investment income is 10K.

So, first do I need to allocate my health insurance premiums across all these revenue sources or just some? Secondly, what is the allocation methodology?  Third, is there something in TT Home & Business that will help me do this?

Thanks.

[Coleen3 · Accepted solution]

Yes. Allocate your Social Security first toward your Self-Employed deduction following the steps below. Any balance left over can be deducted on Schedule A, Itemized deductions. 

if you are self-employed and eligible for the self-employed health insurance deduction, you can include your Medicare premiums in your self-employed health insurance deduction. It's a deduction on the front page of the 1040, line 29.

If you want these premiums to be part of the self-employed health insurance deduction, do not enter your Medicare premiums when entering the information from your SSA-1099 (Social Security Benefits). When you go through the questions for your business expenses, enter those premium expenses for self-employed health insurance premiums.

To add the self-employed health insurance to your return:

·        Type self-employed health insurance deduction in the search bar.

·        Click Jump to self-employed health insurance deduction.

·        Continue the onscreen interview until you get to the Enter Your Business Expenses, choose Less common expenses, then choose Health Insurance Premiums.