When you fill out a Marketplace application, you’ll need to estimate what your household income for the year.
- Marketplace savings are based on your expected household income for the year you want coverage, not last year’s income.
- You'll be asked about your current monthly income and then about your yearly income.
The Marketplace uses a number called "modified adjusted gross income (MAGI)" to determine if you qualify for savings.
What's a modified adjusted gross income (MAGI)?
Get more information on how to estimate your modified adjusted gross income.
Whose income to include in your estimate
For most people, a household consists of:
- The tax filer
- Their spouse if they have one
- Their tax dependents, including those who don’t need coverage
The Marketplace counts estimated income of all household members. Learn more about who’s counted in a Marketplace household.
What income types to count in your estimate
Count these income types:
- Alimony from divorces and separations finalized before January 1, 2019
- Capital gains
- Excluded (untaxed) foreign income
- Federal taxable wages (from your job)
- Investment income
- Rental and royalty income
- Retirement or pension income
- Self-employment income
- Social Security
- Social Security Disability Income (SSDI)
- Tips
- Unemployment compensation
Don't count these income types:
- Alimony for divorces and separations finalized on or after January 1, 2019
- Child support
- Child Tax Credit checks or deposits (from the IRS)
- Gifts
- Proceeds from loans (like student loans, home equity loans, or bank loans)
- Supplemental Security Income (SSI)
- Veterans' disability payments
- Worker's compensation
If you expect other income types or have questions, get details on what counts as income from the IRS.
- Do I include my dependents' income from things like summer jobs, work-study, and limited part-time work?
Count their income only if they need to file a federal tax return. Check IRS guidelines on filing requirements for dependents.
If they file a tax return when they don't have to – like to get a tax refund – their income won't be counted.
- Can I take any income deductions?
The Marketplace lets you subtract certain deductions from your income. Find out about these deductions and how to report them.
- What if my income is hard to predict (like if I work irregular hours or seasonally)?
Sometimes it can be hard to predict your income, like if you work seasonally, have an irregular work schedule, or recently changed jobs. For now, report your current income. We’ll show you a yearly estimate. You can update your application by reporting changes as they happen.
Report income changes to the Marketplace
Once you have Marketplace health insurance, it’s important to report any income changes as soon as possible.
Failing to do so could mean missing out on savings or owing money back when you file your federal tax return. Learn how to report changes to the Marketplace.