Count income & household size

When you fill out a health insurance application and use some tools on this website, you’ll need to estimate your expected income. Two important things to know:

Marketplace savings are based on your expected household income for the year you want coverage, not last year’s income.
Income is counted for you, your spouse, and everyone you'll claim as a tax dependent on your federal tax return (if the dependents are

required to file

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.

How to make an estimate of your expected income

Step 1. Start with your household’s 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.

from your most recent federal income tax return. Don’t have recent AGI? See another way to estimate your income. Step 2. Add the following kinds of income, if you have any, to your AGI:

Tax-exempt foreign income
Tax-exempt Social Security benefits (including tier 1 railroad retirement benefits)
Tax-exempt interest

Don’t include Supplemental Security Income (SSI). Step 3. Adjust your estimate for any changes you expect. Consider things like these for all members of your household:

Expected raises
New jobs or other employment changes, including changes to work schedule or self-employment income
Changes to income from other sources, like Social Security or investments
Changes in your household, like gaining or losing dependents. Gaining or losing a dependent can have a big impact on your savings.

Now you have an estimate of your expected income.

More details on reporting income and household members

See who to include in your household
What income to include in your estimate

Estimating unpredictable income

It’s hard to predict your income if you’re unemployed, self-employed, on commission, or on a work schedule that changes regularly.

If your income is hard to predict, base your estimate on your past experience, recent trends, what you know about possible changes at your workplace, and similar information. If the job is new to you, ask people in the same field or in the same company about their experiences.

Learn more about how to estimate your expected income if you’re:

IMPORTANT Update your Marketplace application as soon as possible when your income or household members change during the year. Learn how to update your information during the year.

How do I upload documents to verify my income for the Marketplace?

If the Marketplace tells you to provide pay stubs, self-employment records, or other information to verify your income, follow these directions to upload documents.

What is "MAGI," and do I need to use it for anything?

The Heath Insurance Marketplace uses an income figure called Modified Adjusted Gross Income (MAGI)

The figure used to determine eligibility for premium tax credits and other savings for Marketplace health insurance plans and for Medicaid and the Children's Health Insurance Program (CHIP). MAGI is adjusted gross income (AGI) plus these, if any: untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest.

Refer to glossary for more details.

to determine the programs and savings you qualify for. For most people, it’s identical or very close to Adjusted Gross Income (AGI). MAGI is not a line on your federal tax return.

The estimate instructions above are based on MAGI, but it’s not a term you need to know in order to apply or use tools on this site.

What if I don’t know my household’s recent Adjusted Gross Income?

Start with “federal taxable wages” for each income earner in your household.

You should find this amount on your pay stub.
If it's not on your pay stub, use gross income before taxes. Then subtract any money the employer takes out for health coverage, child care, or retirement savings.
Multiply federal taxable wages by the number of paychecks you expect in the tax year to estimate your income.
See what other household income sources to include.
Adjust all income amounts for expected changes during the year.

Why do I need to include people in my household who don’t need insurance?

Marketplace savings are based on income for all household members, not just the ones who need insurance.

If anyone in your household has coverage through a job-based plan, a plan they bought themselves, a public program like Medicaid, CHIP, or Medicare, or another source, include them and their income on your application.

When you apply you’ll say which household members need coverage.

What if my household income changes during the year?

Report income and household changes on your Marketplace insurance application as soon as possible. If you don’t, you could wind up with the wrong amount of savings or even the wrong insurance plan. Learn how to update your income during the year.

Are income and household rules the same for Marketplace insurance plans and Medicaid coverage?

There are some differences, depending on your state and other factors. The Marketplace application may ask you specific questions to see if you’re eligible for Medicaid. If it looks like anyone in your household qualifies for Medicaid or the Children’s Health Insurance Program (CHIP), we’ll send your application to your state agency. They may ask you for more information. If it turns out you’re eligible, they’ll help you enroll.