When you fill out a Marketplace application, you’ll need to estimate what your household income is likely to be for the year.
For most people, a household consists of the tax filer, their spouse if they have one, and their tax dependents, including those who don’t need coverage.
The Marketplace counts estimated income of all household members.The Marketplace uses an income number called modified adjusted gross income (MAGI) to determine eligibility for savings. It’s not a line on your tax return.
Your MAGI is the total of the following for each member of your household who’s required to file a tax return:
adjusted gross income (AGI)Your total (or “gross”) income for the tax year, minus certain adjustments you’re allowed to take. Adjustments include deductions for conventional IRA contributions, student loan interest, and more. Adjusted gross income appears on IRS Form 1040, line 11. Refer to glossary for more details.
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.
| Income type | Include as income? | Notes |
|---|---|---|
| Federal Taxable Wages (from your job) | Yes | If your pay stub lists “federal taxable wages,” use that. If not, use “gross income” and subtract the amounts your employer takes out of your pay for child care, health coverage, and retirement plans. |
| Tips | Yes | |
| Self-employment income | Yes | Include “net self-employment income” you expect — what you’ll make from your business minus business expenses. Note: You’ll be asked to describe the type of work you do. If you have farming or fishing income, enter it as either “farming or fishing” income or “self-employment,” but not both. |
| Unemployment compensation | Yes | Include all unemployment compensation that you get from your state. Visit CareerOneStop's Unemployment Benefits Finder This link goes to an external site |
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Include: Divorces and separations finalized before January 1, 2019. Don't Include: divorces and separations finalized on or after January 1, 2019. Select a question for more details:Marketplace savings are based on total household income, not the income of only household members who need coverage.
If anyone in your household has coverage through a job-based plan, a plan they bought themselves, a public program like
Insurance program that provides free or low-cost health coverage to some low-income people, families and children, pregnant women, the elderly, and people with disabilities. Many states have expanded their Medicaid programs to cover all people below certain income levels.
Refer to glossary for more details.
Children's Health Insurance Program (CHIP)Insurance program that provides low-cost health coverage to children in families that earn too much money to qualify for Medicaid but not enough to buy private insurance. In some states, CHIP covers pregnant women.
Refer to glossary for more details.
A federal health insurance program for people 65 and older and certain younger people with disabilities. It also covers people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD).
Refer to glossary for more details.
, or another source, include them and their income on your application. When you apply you can select which household members need coverage.The minimum income requiring a dependent to file a federal tax return. 2023 filing requirements for dependents under 65: Earned income of at least $13,850, or unearned income (like from investments or trusts) of at least $1,250. You must include on your Marketplace application income for any dependent required to file.
Refer to glossary for more details.
Even if they file a tax return when they don't have to – like to get a tax refund – their income won’t be counted.
The Marketplace allows you to reduce your income with certain deductions. Learn about these deductions and how to report them.
Sometimes it can be hard to predict your income, like if you work seasonally, have an irregular work schedule, or recently experienced a job change. For now, report your current income. We’ll show you a yearly estimate. You can report changes to your application as they happen. It’s important to do this right away because your coverage options and savings may change.
Once you have Marketplace health insurance, it’s very important to report any income changes as soon as possible.
If you don’t report these changes, you could miss out on savings or have to pay money back when you file your federal tax return.