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Count income & household size

What to include as income

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.
Notice:
Make your best estimate for your income
This way, you qualify for the right amount of savings. Otherwise, you could have to pay money back when you file your federal tax return. If your income changes during the year, you can update your application.
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)?

The figure used to determine eligibility for premium tax credits and other savings for Marketplace health insurance plans and for Medicaid and the Children's Health Insurance Program (CHIP). MAGI is adjusted gross income (AGI) plus these, if any: untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest.
MAGI doesn't appear as a line on your tax return. To figure out your MAGI:
  1. Start with your adjusted gross income (AGI). This is the figure on IRS Form 1040, line 11 of your federal income tax return.
  2. Take your adjusted gross income amount and add any untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest. Don’t add any Supplemental Security Income (SSI) you got.
For many people, their MAGI is the same as or very close to their adjusted gross income.
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
  • Social Security Disability Income (SSDI)
  • Tips
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.

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.
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