When you fill out a Health Insurance Marketplace application, you’ll have to estimate your net self-employment income. Marketplace savings are based on your estimated net income for the year you’re getting coverage, not last year’s income.
When you’re self-employed, it can be hard to estimate your income for the coming months or year.
IMPORTANT - Update your estimated annual net income when your business circumstances change. If you wind up making more than you reported on your Marketplace application, you could have to pay back some or all of the premium tax credits you took during the year. If you wind up making less, you could qualify for more savings than you claimed during the year. Learn how to update your income when it changes.
On your Marketplace application, you’ll report your net income from your self-employment. (Net income is sometimes called "profit.")
Your net income from self-employment is what you report on Schedule C of your federal tax return. Learn about self-employment income from the IRS (PDF).
Ready to obtain the right health insurance? Check your eligibility for free or low cost health insurance through the marketplace in 4 simple steps...