Adding income

Generally, if you include an income source on your federal tax return, include it on your Marketplace application. Refer to IRS instructions on income. Exceptions and details for the Marketplace appear below.

To determine if you qualify for cost savings, we ask for:

• Your current income this month
• Your estimated income for the full year

When you enter your current monthly income, we'll then show you a yearly estimate based on that amount. You can change the estimates to account for changes you expect during the coverage year.

Gross or net? For jobs, enter current "federal taxable income" (or "taxable income"). That's your gross income (before taxes are taken out) minus anything your employer withholds for health insurance, retirement savings, and dependent care.

Hard-to-predict income? Select "Job income" below to find out how to estimate hard-to-predict income, like commissions, tips, and other income from jobs.

Not getting a type of income this month?

• Don't select it from the drop-down menu when we ask about your types of current income.
• If your application shows income that you aren't getting this month, remove it by selecting "Remove."
• When we show you an estimate of your yearly income, you can change it by adding the income you expect later.

What to include based on type of income

When you enter your income in the application, you'll be able to make changes if you need to add or remove so the estimate of your yearly income is what you expect.

Select an income type:

Job income

• Enter your current income.
• Include wages, salaries, tips, commissions, and bonuses you get from an employer.
• For each job, use your “federal taxable income” (sometimes called “taxable income”).
  • That’s your gross income before taxes are taken out, minus any money your employer withholds for health insurance, retirement savings, or dependent care.
• When entering your income amounts in your application, you can select "Get help estimating income" to enter your income based on how frequently you get paid (like weekly or biweekly) to get the monthly total.

Hard-to-predict job income

• If you’re paid commissions or bonuses, work seasonally, expect a job change, or have an irregular work schedule, enter your current income. 
• Include wages, salaries, tips, commissions, and bonuses you get from an employer.
• For each job, use your "federal taxable income" (sometimes called "taxable income").
• Sometimes you can't predict your income. Make your best estimate of current income and adjust the yearly estimate we show you. If things change, update your application to change your income amounts.

Job income you don't get now but expect later

• Don't report it as current job income. We'll show you a yearly estimate later. Add your expected job income to that total.

Job income you don't get now but had earlier in the year

• Don’t report it as current job income. We’ll show you a yearly estimate later. Add your previous job income to the total.

Self-employment income

• Enter the net income (profit) or loss you expect from your trade or business this month.
• Self-employment is generally considered work you do as an “independent contractor” or “sole proprietor” of a small business you operate. It may include freelance and consulting work. Learn how the IRS defines self-employment.
• Net self-employment income is what you report on Schedule C of your federal tax return — it's your income amount after business expenses are taken out. This may be a positive number (profit) or a negative number (loss).
• If your self-employment income is hard to predict, make your best estimate and update your income if things change later in the year.
• Describe the kind of work you do. Keep it simple and clear, like “house cleaning,” “jewelry making” or “construction.”
• If you’re a partner, include your distributive share from the partnership as self-employment income.

Social Security benefits (or Railroad Retirement Board benefits)

• Include any current income from Social Security disability, retirement, or survivor’s benefits.
• Don’t enter Supplemental Security Income (SSI) benefits. It’s not considered income by the Marketplace.
• Include all Social Security income, including non-taxable income.
• You can find the amount of your Social Security income on the cost-of-living increase letter you get each year.
• Enter the full amount before any deductions are taken out, like Medicare premiums, income tax withholding, overpayments, child support, or alimony.
• If you’re getting an extra payment this month, include it when you enter your monthly amount. We’ll show you a yearly estimate based on your monthly income, and you can adjust it based on payments you won’t get other months.

Unemployment

• Include any unemployment compensation you’re currently getting whether it’s from a government office, employer, or union.
• Enter the name of the state or former employer providing the benefits.
• Enter a date the unemployment benefits are set to expire, if there is one.
• Later we’ll show you a yearly estimate of your total income. Adjust it to account for periods you won’t be getting your current unemployment income.
• For the limited exceptions to unemployment benefits being defined as income, read IRS Publication 525 (PDF, 1.8 MB).

Retirement, including withdrawals from most IRAs, 401ks, and similar plans

• Include most IRA and 401k withdrawals as income. (Refer to IRS rules to determine the portion that’s considered income.)
• Report any withdrawals you expect to make this month.
• Include retirement account withdrawals even if you’re not retired.
• When we show you a yearly amount, you can adjust it based on how much you expect to withdraw during the year.

Don't include distributions from a qualified Roth account as income.

Pensions

• Enter the payments you're currently getting from your pension plan.
• Most pensions are considered income. If you claim your pension as income on your federal income tax return, include it. If you’re not sure, contact your pension plan.
• Distributions from designated Roth accounts don’t count as income.

Capital gains

• Enter the income you get from selling property or investments (capital gains). If you’ll pay taxes on it, include it.
• For more information, read IRS Publication 17 (PDF, 5.5 MB) or IRS Publication 544 (PDF, 1.7 MB).

Investment income

• Enter any income you get from an investment, like bank account interest or dividends from mutual funds or stocks.
• Include tax-exempt interest.

Rental or royalty income

• Enter any net rental or royalty income (or loss) you’re currently getting.
• Rental income is the amount you get for use of your property. Royalty income includes payment from a patent, copyright, or a natural resource you own.
• For more information, read IRS Publication 17 (PDF, 5.5 MB).

Farming or fishing income

• f you have current net income (or loss) from farming or fishing, you can enter it as “farming or fishing” income or “self-employment” income, but not both. 
• It can be hard to predict this kind of income, so make your best estimate. Update your income if things change later in the year.

Alimony

• If your divorce or separation was finalized:
  • Before January 1, 2019: Include alimony as income. The person who paid the alimony may deduct this as an expense.
  • On or after January 1, 2019: Don’t include alimony as income. The payer can’t deduct this as an expense.
• Report any payments you’re currently getting from a spouse or former spouse if the payments are part of a divorce agreement, separation agreement, or court order.
• Don't report payments designated or ordered as child support or as a non-taxable property settlement.

Other income types to report

• Canceled debts: If you incur a debt from a loan or from buying something on credit and part of the amount you owed is discharged or forgiven, the amount forgiven is generally considered income. For more information, read IRS Publication 17 (PDF, 5.5 MB).
• Court awards: If you get money from a lawsuit, the amount may be taxable. 
  • Examples of awards you should report: compensation for lost wages and punitive damages.
  • Examples of awards you should NOT report: amounts for personal physical injury or sickness and compensation for damages to your property (if the payment is less than the amount paid for the property).   
    
    For more information, read IRS Publication 17 (PDF, 5.5 MB).
• Jury duty pay: If you expect to be paid for jury service, enter how much you’re getting, including reimbursement for transportation. If the money goes straight to your employer, don’t enter it.
• Cash support: Enter expected cash support only if you’re a tax dependent of someone other than your parent or spouse and they’re including you on their health coverage application.
  • If so, enter the amount of cash support you get from the person who claims you as a tax dependent. For example, if the tax filer gives you $200 per month for rent or other living costs, include that amount.
  • Don’t include “in-kind” support like the value of room and board or any clothes provided.
• Gambling, prizes, or awards: This includes lottery winnings. It doesn’t include prizes that aren’t taxable, like most academic scholarships.
• Other: If you have other types of income not listed above, you should enter them in your application.

Scholarships and grants

• Many scholarships and grants aren’t taxable, so you don’t need to enter amounts from these scholarships. Check with the granting institution.
• If the scholarship or grant is taxable, enter the amount and how often you get it.
• Work-study jobs are considered income, and you should report that amount like any other job income.

Clergy or religious order members income

If you’re a member of the clergy or a religious order, exclude from your Marketplace application any income you exclude from your federal income tax return.

Income types you should not report

• Proceeds from loans (like student loans, home equity loans, bank loans, or personal loans)
• Child support
• Veteran’s payments
• Workers’ compensation or injury damage awards
• Supplemental Security Income (SSI)
• Gifts (regardless of amount)
• Federal tax refunds and credits, like the child tax credit amount you may get in payments during the year