How to Estimate Your Household Income
When an application for health insurance is filled on the HealthCare.gov Marketplace, we will be asked for an estimate of your household’s expected income. Marketplace savings, subsidies, and cost-sharing reduction determinations are based on expected income for the year you are beginning coverage. Household income applies to you, your spouse, and everyone you’ll claim as a tax dependent on your federal tax return, whether or not each individual is applying for coverage.
What to Include in Your Income Estimate
The Marketplace uses the income estimate of Modified Adjusted Gross Income (MAGI) to determine costs and eligibility for savings.
Your MAGI is the total of the following for each member of your household who’s required to file a tax return.
Your Adjusted Gross Income (AGI) on your most recent federal tax return
Excluded foreign income
Nontaxable Social Security benefits
Tax-exempt interest
MAGI does not include Supplemental Security Income (SSI)
Common Types of Income to Include:
Federal Taxable Wages (from your job)
Tips
Self-employment Income
Unemployment Compensation
Social Security
Social Security Disability Income (SSDI)
Retirement or Pension Income
Investment Income
If your income is difficult to predict because of unemployment, self-employment, commission or irregularity - base your estimate on your past experience, recent trends, or use: HealthCare.gov’s Income Calculator Tool
Submitting Supporting Documentation to the Marketplace
The Marketplace may ask for documentation to confirm or support the information provided on your application regarding your income estimate, citizenship or immigration status, or special enrollment eligibility. Your Insurance Advocates will inform you if any documentation is requested, the type of documentation you’ll need to provide, and the deadline to submit documentation. Once you have compiled electronic files of the doumentation you’ll need, we will submit the documentation to the Marketplace on your behalf, and provide updates when documentation is being processed, once the documentation is approved, or if any further documentation is requested. Failure to submit documentation before the deadline could result in loss of coverage, financial assistance, or eligibility to enroll.
Reporting Income or Household Changes After Enrollment
If your income estimate or household changes, it is important to update the Marketplace with the most accurate information. These changes can include: higher/lower income, adding/losing a household member, offers for other health coverage, change in address, etc. If you’ve experienced a life change that affects your Marketplace health plan, contact Your Insurance Advocates to discuss making the necessary updates to you application, and what changes you can expect once updates are made.