Start with income for the year you need coverage
Use your expected annual household income for the coverage year, not simply last year's earnings or take-home pay. Income is one part of eligibility; household size, access to other coverage and Marketplace rules also matter.
There is no single dollar cutoff for every household. The applicable income rules depend on family size and the coverage year. A quote is an estimate, not an eligibility decision.
What is Modified Adjusted Gross Income (MAGI)?
Marketplace MAGI starts with adjusted gross income (AGI), then adds tax-exempt interest, excluded foreign income and non-taxable Social Security benefits. Do not add Supplemental Security Income (SSI). For many people, MAGI is close to AGI.
For example, someone with wages and a side business should consider the business's net income after expenses, rather than adding all customer payments as profit. This is an income-preparation example, not a subsidy calculation.
Which income should you count?
Common examples include taxable wages, net self-employment earnings, unemployment compensation, investment income, capital gains and most retirement withdrawals. Child support, gifts and loan proceeds generally are not counted. Use the official income checklist for exceptions and unfamiliar income types.
If work is seasonal or variable, make your best annual estimate and report changes to the Marketplace. Keep records of how you estimated your income.
Household size and income work together
Your Marketplace household generally includes you, your spouse and tax dependents, even if some do not need insurance. A dependent's income generally counts only when they are required to file a federal tax return. Special household and tax-filing situations need individual review.
For example, a married couple filing jointly with one dependent can have a household of three while only one person applies for coverage. Household size and applicant count are different. Family size affects the income guidelines used to assess savings.
Location can change plan prices and savings
Your ZIP code and county matter because plan availability and benchmark plan pricing can vary by area. Two households with similar income can see different estimated savings if they live in different counties or states.
Estimated savings shown during quoting should be treated as estimates until eligibility is verified through the official application process.
Income alone does not establish eligibility
An offer of affordable employer coverage that meets minimum value, or eligibility for certain government coverage, can affect premium tax credits. Tax-filing requirements also apply. Check official guidance or a qualified tax professional for your circumstances.
Once you have an income estimate, use the calculator to compare live plan quotes. Final eligibility and premiums require official confirmation; viewing quotes does not enroll you.
IRS: premium tax credit eligibility questions
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