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How to calculate your expected income

When you fill out the health insurance application and use some of the tools on this website, you will need to calculate 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 will claim as a tax dependent on your federal tax return. Include your income, even if you don't have health coverage.

How to estimate expected income

Step 1. Start with your household's adjusted gross income from the most recent federal tax return. You will find your adjusted gross income on line 7 of the IRS Form 1040 .

Step 2. Add the following types of income, if any, to your adjusted gross income:

  • Tax-exempt foreign income

  • Social Security tax exempt benefits (including Tier 1 railroad retirement benefits)

  • Tax exempt interest

Do not include Supplemental Security Income (SSI).

Step 3. Adjust your estimate for the changes you expect.

Keep things like these in mind for everyone in your household:

  • Expected increases

  • New jobs or other changes in employment, including changes in work hours or self-employment income

  • Changes in income from other sources, such as Social Security or investments

  • Changes in your home, such as gaining or losing dependents. Gaining or losing a dependent can have a big impact on your savings.

You now have an estimate of your expected income.

Some frequently included data on this page was collected from:

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