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: 

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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 compensation

Yes

Social 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

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