Estimating Your Expected Income

To determine your eligibility for health insurance savings through the Marketplace, follow these steps to estimate your expected income accurately:

1. Basis for Savings

• Current Year Income: Savings are based on the expected income for the coverage year, not the previous year.
• Household Income: Include income for you, your spouse, and all dependents you will claim on your federal tax return, even if they do not need health coverage.

2. How to Estimate Your Income

Step 1: Start with your household’s adjusted gross income (AGI) from your most recent federal income tax return.

• No Recent AGI? Use alternative methods to estimate your income.

Step 2: Add any additional income to your AGI, such as:

• Tax-exempt foreign income
• Tax-exempt Social Security benefits
• Tax-exempt interest

Note: Exclude Supplemental Security Income (SSI).

Step 3: Adjust for anticipated changes:

• Income Adjustments: Include expected raises, job changes, or fluctuations in self-employment income.
• Household Changes: Consider impacts from gaining or losing dependents.

3. Handling Unpredictable Income

If your income varies:

• Use Past Trends: Base your estimate on past income, recent trends, and any known changes.
• Seek Advice: Consult with others in similar positions for insights.

4. Tools and Assistance

• Income Calculator: Utilize our income calculator for accurate estimates.
• Special Circumstances: Review guidance for unemployment or self-employment situations.

Important: Update your Marketplace application promptly if there are changes to your income or household

Who to Include in Your Household for Health Insurance Marketplace

When applying for health insurance through the Marketplace, your household typically includes:

• The tax filer
• Their spouse (if applicable)
• Their tax dependents

Household Composition:

• Tax Filer + Spouse + Tax Dependents = Household

Rules for Including Household Members:

1. Spouse: Include your legally married spouse, regardless of whether they need health coverage.
2. Tax Dependents: Include anyone you plan to claim as a tax dependent for the coverage year.
3. Dependents Not Claimed: Do not include individuals you will not claim as tax dependents.
4. Non-Tax Dependents: Include individuals such as your spouse and tax dependents even if they do not require health coverage.

What to Include as Income for Marketplace Applications

When applying for coverage through the Marketplace, you need to estimate your household’s expected income for the coverage year. The amount of savings you qualify for is based on this estimate, not on your previous year's income.

Key Points:

1.Estimate Accurately: Provide a detailed estimate of your anticipated household income for the year you seek coverage to ensure you receive the appropriate savings.

2. Income to Report:

1. • Current and Annual Income: You’ll be asked to provide details about both your current monthly income and your total yearly income.
   • Household Members: Include income from the tax filer, their spouse (if applicable), and all tax dependents, even if they do not need health coverage. The Marketplace considers the estimated income of all household members.

3. Types of Income to Include:

• • • Modified Adjusted Gross Income (MAGI): This is the measure used by the Marketplace to determine eligibility for savings. It is different from the line items on your tax return and includes all sources of income.

For more information on what counts as household income and who to include, refer to the Marketplace guidelines on household composition and income reporting.