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Count income & household size

What to include as income

When you fill out a Marketplace application, youโ€™ll need to estimate what your household income is likely to be for the year.
  • Marketplace savings are based on your expected household income for the year you want coverage, not last yearโ€™s income. You must make your best estimate so you qualify for the right amount of savings.
  • You will be asked about your current monthly income and then about your yearly income.

Whose income to include in your estimate

For most people, a household consists of the tax filer, their spouse if they have one, and their tax dependents, including those who donโ€™t need coverage.
The Marketplace counts estimated income of all household members.

Types of income to include

The Marketplace uses an income number called modified adjusted gross income (MAGI) to determine eligibility for savings. Itโ€™s not a line on your tax return.
Your MAGI is the total of the following for each member of your household whoโ€™s required to file a tax return:
  • Your
    on your federal tax return
  • Excluded foreign income
  • Nontaxable Social Security benefits (including tier 1 railroad retirement benefits)
  • Tax-exempt interest
  • MAGI does not include Supplemental Security Income (SSI)
The chart below shows common types of income and whether they count as part of MAGI. If you expect income types not listed or have additional questions, get details on what counts as income from the IRS.
Types of income to include in your estimate
Income typeInclude as income?Notes
Federal Taxable Wages (from your job)YesIf your pay stub lists โ€œfederal taxable wages,โ€ use that. If not, use โ€œgross incomeโ€ and subtract the amounts your employer takes out of your pay for child care, health coverage, and retirement plans.
Self-employment incomeYesInclude โ€œnet self-employment incomeโ€ you expect โ€” what youโ€™ll make from your business minus business expenses. Note: Youโ€™ll be asked to describe the type of work you do. If you have farming or fishing income, enter it as either โ€œfarming or fishingโ€ income or โ€œself-employment,โ€ but not both.
Unemployment compensationYesInclude all unemployment compensation that you get from your state. Visit CareerOneStop's Unemployment Benefits FinderThis link goes to an external site

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Social SecurityYesInclude both taxable and non-taxable Social Security income. Enter the full amount before any deductions.
Social Security Disability Income (SSDI)YesDon't include Supplemental Security Income (SSI).
Retirement or pension IncomeYesInclude most IRA and 401k withdrawals. (See details on retirement income in the instructions for IRS publication 1040). Donโ€™t include qualified distributions from a designated Roth account.
Include: Divorces and separations finalized before January 1, 2019.
Don't Include: divorces and separations finalized on or after January 1, 2019.
Child supportNoย 
Capital gainsYesย 
Investment incomeYesInclude expected interest and dividends earned on investments, including tax-exempt interest.
Rental and royalty incomeYesUse net rental and royalty income.
Excluded (untaxed) foreign incomeYesย 
Supplemental Security Income (SSI)NoDo include Social Security Disability Income (SSDI).
Veteransโ€™ disability paymentsNoย 
Workerโ€™s CompensationNoย 
Proceeds from loans (like student loans, home equity loans, or bank loans)Noย 
Child Tax Credit checks or deposits (from the IRS)Noย 
Select a question for more details:

Report income changes to the Marketplace

Once you have Marketplace health insurance, itโ€™s very important to report any income changes as soon as possible.
If you donโ€™t report these changes, you could miss out on savings or have to pay money back when you file your federal tax return.