Your household includes only the people you will include on your taxes such as a spouse, dependents etc.Plus, Marketplace savings are based on total household income, not the income of only household members who need insurance. When you apply, you can indicate which household members need coverage.
Your Modified Adjusted Gross Income 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 federal tax return
• Excluded foreign income
• Nontaxable Social Security benefits
• Tax-exempt interest
MAGI does not include Supplemental Security Income (SSI)Here is a breakdown of common types of income you will want to either include or not include:
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 insurance, 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 compensationYesSocial Security
Yes. Include both taxable and non-taxable Social Security income. Enter the full amount before any deductions.
Social Security Disability Income (SSDI)
Yes. But do not include Supplemental Security Income (SSI).
Retirement or pension Income
Yes. Include most IRA and 401k withdrawals. (See details on retirement income in the instructions for IRS publication 1040. Note: Don’t include qualified distributions from a designated Roth account as income.
Alimony
Yes
Child support
No
Capital gains
Yes
Investment income
Yes, include expected interest and dividends earned on investments, including tax-exempt interest.
Rental and royalty income
Yes, use net rental and royalty income.
Excluded (untaxed) foreign income
Yes
Gifts
No
Supplemental Security Income (SSI)
No, but do include Social Security Disability Income (SSDI).
Veterans’ disability payments
No
Worker’s Compensation
No
Proceeds from loans (like student loans, home equity loans, or bank loans)
No
