Net self-employment income is used for MAGI.

This is income minus allowable deductions.

How do I figure out my estimated income to include on my health insurance application? I’m self-employed in NY and this will be my second year having health insurance through the marketplace. I’m not confident that I included the correct income for last year and am using my tax return as guidance. Talk to me like I’m 12. Do I use the gross income? Do I subtract my qualified business income deductions? Which lines on my 1040 can I find these numbers? This will forever be the bane of my existence!

Why ACA Health Insurance Is Ideal for Self-Employed Workers

Being your own boss has many perks—flexibility, freedom, and the ability to grow your income on your terms. But one of the biggest challenges? Health insurance.

If you’re self-employed and don’t have access to an employer-sponsored plan, the ACA Marketplace may be your best (and most affordable) option. In this guide, we’ll break down exactly how to get covered, qualify for subsidies, and pick the right plan when your income isn’t always predictable.

The Affordable Care Act (ACA) created a way for individuals—especially self-employed, gig workers, and freelancers—to get health coverage without needing a traditional employer plan.

Here’s why it works well:

• You can apply based on estimated income, not fixed paychecks

• You may qualify for premium tax credits (aka subsidies)

• Plans cover essential health benefits, including preventive care, prescriptions, mental health, and more

• You can pick from multiple plan tiers to fit your needs and budget

Whether you’re a real estate agent, Uber driver, freelancer, or run your own LLC, the ACA was built with you in mind.

How to Qualify for Subsidies Without a Fixed Income

One of the biggest questions self-employed people ask is:

“How can I estimate my income if I don’t know what I’ll make this year?”

Great question. Here’s how it works.

Income Estimation Tips

When applying for ACA health insurance, you’ll provide your Modified Adjusted Gross Income (MAGI) estimate for the year.

This includes:

• Net income from self-employment

• 1099 income

• Side gigs and freelance jobs

• Any other taxable income

Tip: Use last year’s income as a starting point and adjust for changes you expect this year.

Premium Tax Credit Explained

If your estimated income is between 100% and 400% of the Federal Poverty Level (FPL), you’ll likely qualify for a premium subsidy.

Even if your income fluctuates during the year, you won’t lose coverage—you’ll just reconcile it when you file taxes.

👉 Check your subsidy eligibility

Picking the Right Marketplace Plan

The ACA Marketplace offers four plan types:

• Bronze: Lowest premiums, highest out-of-pocket costs

• Silver: Balance of premium and coverage; eligible for cost-sharing reductions

• Gold: Higher premiums, lower deductibles

• Platinum: Highest premiums, best coverage (rarely chosen by self-employed)

Bronze vs Silver vs Gold Plans for Self-Employed

Tip: If you expect high medical usage or need ongoing prescriptions, a Silver or Gold plan might be more cost-effective than Bronze.

When and How to Enroll as a Freelancer or Contractor

Open Enrollment Period (OEP):

• Runs from November 1 to January 15 every year

• Anyone can enroll or change plans during this time

Special Enrollment Period (SEP):

You may qualify if:

• You lost employer coverage

• You got married or had a baby

• You moved to a new ZIP code

• You had a change in income

If you missed Open Enrollment, contact Benavest to see if you qualify for a SEP.

👉 Explore ACA Plans for Self-Employed Individuals

Being self-employed gives you the freedom to build your future—but that doesn’t mean you have to go without health insurance. With ACA Marketplace plans, you can:

• Protect yourself financially from medical emergencies

• Qualify for subsidies, even with a fluctuating income

• Access quality coverage that fits your unique lifestyle

Need help estimating your income or picking the right plan? Let the licensed agents at Benavest guide you—at no cost to you.

FAQs About ACA and Self-Employment

Q1: Can I get ACA insurance if I’m self-employed?

Yes! The ACA Marketplace was designed for individuals without employer-sponsored insurance, including freelancers, gig workers, and small business owners.

Q2: How do I estimate my income for the ACA?

Use your projected net self-employment income (after business expenses). You can revise it during the year if your income changes significantly.

Q3: Are ACA premiums tax-deductible if I’m self-employed?

Yes. If you’re not eligible for other coverage (like through a spouse), you can deduct your health insurance premiums on your tax return.

Q4: What if my income changes after enrolling?

You can update your income on Healthcare.gov or through your Benavest agent. This may adjust your subsidy or monthly premium.

Need health insurance as a freelancer or independent contractor?
Let Benavest help you find an affordable ACA plan that fits your lifestyle.

👉 Talk to a Licensed Agent Today