The Marketplace uses MAGI to determine eligibility for savings. It is not a line on your tax return.
- MAGI is the total of the following for each member of a household who is required to file a tax return:
- Adjusted gross income (AGI) that would be included on a federal tax return
- Excluded foreign income
- Nontaxable Social Security benefits (including tier 1 railroad retirement benefits)
- Tax-exempt interest
The chart below shows common types of income and whether they count as part of MAGI. For example, MAGI does not include Supplemental Security Income (SSI). If a consumer expects income types not shown or have additional questions, you should refer them to details on what the IRS counts as income(opens in a new tab).
| Income type | Include as income? | Notes |
|---|---|---|
| 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 childcare, 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. See additional information on HealthCare.gov(opens in a new tab). If you are asked to confirm self-employment income on your application you may be asked to confirm information you put on your Marketplace application, or to provide additional information. You can usually resolve this issue by uploading documents(opens in a new tab). If you are self-employed, you may be asked to upload a “self-employment ledger” to confirm your income. There is not a standard self-employment ledger format. It just needs to provide an accurate, detailed record of your self-employment income and expenses. |
| Unemployment compensation | Yes | Include all unemployment compensation that you receive from your state(opens in a new tab). |
| 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 | Do not include Supplemental Security Income (SSI). |
| Retirement or pension income | Yes | Include most IRA and 401k withdrawals(opens in a new tab). (See details on retirement income in the instructions for IRS publication 1040). Note: Do not include qualified distributions from a designated Roth account as income. |
| Alimony | Depends | Divorces and separations finalized before January 1, 2019: Include as income. Divorces and separations finalized on or after January 1, 2019: Do not include as income. |
| 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 | |
| Child Tax Credit checks or deposits (from the IRS) | No |
The following types of income should NOT be included on Marketplace applications:
- Worker’s compensation
- Capital gains from the sale of a main home if the profit is less than $250,000 ($500,000 for families filing jointly)
- Supplemental Security Income
- Child support
- Gifts
- Veteran’s disability payments
- Proceeds from loans
- Temporary Assistance for Needy Families (TANF) payments
- State tax refunds
- Alimony from divorces and separations finalized after January 1, 2019
- Non-taxable disability pensions
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