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:
Step 1. Start with your household’s adjusted gross income (AGI) from your most recent federal income tax return. You'll find your AGI on line 7 of IRS Form 1040.
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:
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:
Now you have an estimate of your expected 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.
Just do your best to make a realistic estimate — and be prepared to update it when it changes.
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.
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.
The Heath Insurance Marketplace uses an income figure called Modified Adjusted Gross Income (MAGI) 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.
Start with “federal taxable wages” for each income earner in your household.
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.
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.
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.
Ready to obtain the right health insurance? Check your eligibility for free or low cost health insurance through the marketplace in 4 simple steps...