You'll need to provide your estimated Modified Adjusted Gross Income (MAGI) for the application year. This includes your MAGI, your spouse's, and any dependents who are required to file taxes. To calculate your MAGI, begin with your Adjusted Gross Income (AGI) and then add back any untaxed income. This untaxed income can include tax-exempt interest, non-taxable Social Security benefits, and certain foreign income. Importantly, do not include Supplemental Security Income (SSI), child support, gifts, or veteran's disability payments.
When applying for financial assistance, be sure to include the following income sources:
Wages: Your gross income before taxes, including tips.
Retirement and Pension Income: Taxable distributions from IRAs and other retirement plans.
Unemployment Compensation: Any unemployment benefits you receive.
Alimony: Alimony received from divorce or separation agreements finalized before January 1, 2019.
Tax-Exempt Interest: Interest earned on tax-exempt bonds.
Social Security Benefits: Any non-taxable Social Security benefits.
Investment Income: Ordinary dividends and capital gains.
Other Income: This includes self-employment, business, farm, and rental income.
When applying for financial assistance, do not include the following income sources:
Child support payments
Gifts
Supplemental Security Income (SSI)
Veteran's disability payments
Workers' compensation
Alimony for divorce or separation agreements finalized on or after January 1, 2019
Proceeds from student loans or other loans
Tips for Estimating Your Income:
Project for the Current Year: When applying for coverage, estimate your household's expected income for the upcoming year, not the previous one.
Report Income Changes: If your income fluctuates, estimate as accurately as possible. Be sure to report any changes throughout the year to prevent tax-time discrepancies.
Utilize Pay Stubs: If you need help with your estimate, use your pay stubs to determine your "federal taxable wages" and multiply this by the number of paychecks you anticipate receiving in the year.
Account for Adjustments: Remember to modify your income based on any expected changes, such as bonuses or raises.
Need Help?
If you need assistance understanding or updating your information, our Consumer Advocate team can help. Call 855-772-2663, Monday–Friday, 6 a.m.–4 p.m. PT, or visit www.healthsherpa.com to log into your account and make updates.