Count income & household size
How to estimate your expected income
When you fill out a health insurance application and use some tools on this website, you’ll need to estimate your expected income. Two important things to know:
- Marketplace savings are based on your expected household income for the year you want coverage, not last year’s income.
- Income is counted for you, your spouse, and everyone you'll claim as a tax dependent on your federal tax return (if the dependents are See details on who to include in your household.
How to make an estimate of your expected income
Step 1. Start with your household’s
Don’t have recent AGI? See another way to estimate your income.
Step 2. Add the following kinds of income, if you have any, to your AGI:
- Tax-exempt foreign income
- Tax-exempt Social Security benefits (including tier 1 railroad retirement benefits)
- Tax-exempt interest
Don’t include Supplemental Security Income (SSI).
Consider things like these for all members of your household:
- Expected raises
- New jobs or other employment changes, including changes to work schedule or self-employment income
- Changes to income from other sources, like Social Security or investments
- Changes in your household, like gaining or losing dependents. Gaining or losing a dependent can have a big impact on your savings.
Now you have an estimate of your expected income.
More details on reporting income and household members
Estimating unpredictable income
It’s hard to predict your income if you’re unemployed, self-employed, on commission, or on a work schedule that changes regularly.
If your income is hard to predict, base your estimate on your past experience, recent trends, what you know about possible changes at your workplace, and similar information. If the job is new to you, ask people in the same field or in the same company about their experiences.
Learn more about how to estimate your expected income if you’re:
More answers: Income & household size
If the Marketplace tells you to provide pay stubs, self-employment records, or other information to verify your income, follow these directions to upload documents.
The Heath Insurance Marketplace uses an income figure called
The estimate instructions above are based on MAGI, but it’s not a term you need to know in order to apply or use tools on this site.
Start with “federal taxable wages” for each income earner in your household.
- You should find this amount on your pay stub.
- If it's not on your pay stub, use gross income before taxes. Then subtract any money the employer takes out for health coverage, child care, or retirement savings.
- Multiply federal taxable wages by the number of paychecks you expect in the tax year to estimate your income.
- See what other household income sources to include.
- Adjust all income amounts for expected changes during the year.
Marketplace savings are based on income for all household members, not just the ones who need insurance.
If anyone in your household has coverage through a job-based plan, a plan they bought themselves, a public program like Medicaid, CHIP, or Medicare, or another source, include them and their income on your application.
When you apply you’ll say which household members need coverage.
Report income and household changes on your Marketplace insurance application as soon as possible. If you don’t, you could wind up with the wrong amount of savings or even the wrong insurance plan. Learn how to update your income during the year.
There are some differences, depending on your state and other factors. The Marketplace application may ask you specific questions to see if you’re eligible for Medicaid. If it looks like anyone in your household qualifies for Medicaid or the Children’s Health Insurance Program (CHIP), we’ll send your application to your state agency. They may ask you for more information. If it turns out you’re eligible, they’ll help you enroll.