When looking for a Major Medical Health Insurance Plan on Healthcare.gov (also called “the market place”), you are asked about your income. The reason for that is because you might be eligible for savings when your income is low. When you fill in the estimated year income and number of people in your household, the system calculates your estimated premium savings.

Who is considered to be part of the household? Anyone who you claim on your taxes, such as your spouse or dependents. If you are shopping only for your child, include the total income of the child and all the people that are on the same annual tax report. Therefore, all the people on the same tax-report. If you are married and plan to file taxes separately for the plan year, you won’t be eligible for savings.

How to calculate the household income? Include all income from anyone you claim on your taxes and earn income in the stated plan calendar year.

Include income from these sources:

  • Federal taxable wages (from your job)
  • Tips
  • Self-employment income (1099)
  • Unemployment income (including the extra $600 from the 2020 CARES Act)
  • Social security, Social security disability income (SSDI)
  • Retirement or pension income
  • Alimony (only if divorce or separation finalized before January 1st, 2019)
  • Investment income (e.g. from stocks, mutual funds, dividend payments)
  • Excluded (untaxed) foreign income

Do not include income from these sources:

  • Gifts or loans
  • Child support
  • Supplemental Security Income (SSI)
  • Veterans’ disability payments
  • Worker’s Compensation

What if you misestimated your income? If your income changes throughout the year, you should call the insurance company to reflect the updated income estimate so they can adjust the savings on the monthly premiums accordingly.