Last reviewed: September 30, 2026.
Direct answer: HealthCare.gov says Marketplace savings use MAGI. Start with adjusted gross income, then add untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest. Do not add Supplemental Security Income. Count the estimated income of the tax filer, spouse, and tax dependents. Some income types, such as child support and most gifts, are excluded.
How do I estimate MAGI in plain steps?
Follow the HealthCare.gov income page. Use IRS Form 1040 line 11 as the AGI starting point when you have a return. Then add the extra MAGI items if they apply. For the current year, project those same categories. Self-employment income is generally net profit after expenses, not gross receipts.
If income is seasonal or irregular, HealthCare.gov says to report current income, review the yearly estimate, and update as work changes. See what happens if income changes after you enroll.
Which income types are counted?
| Counts toward MAGI | Does not count |
|---|---|
| Wages, salaries, tips | Supplemental Security Income (SSI) |
| Net self-employment income | Child support received |
| Unemployment compensation | Gifts and inheritances |
| Social Security benefits (taxable and non-taxable) | Veterans' disability payments |
| Taxable retirement withdrawals and pensions | Workers' compensation |
| Alimony from divorces finalized before 2019 | Qualified Roth IRA withdrawals |
| Capital gains, interest (including tax-exempt), dividends | Proceeds from loans |
Source: HealthCare.gov, What to include as income.
HealthCare.gov lists federal taxable wages, tips, self-employment, unemployment compensation, Social Security (taxable and non-taxable), SSDI, investment income including tax-exempt interest, net rental income, and most IRA or 401(k) withdrawals other than qualified Roth distributions. Alimony from divorces finalized before 2019 is counted; alimony from later divorces is not.
Which amounts are left out?
Do not count child support, SSI, veterans' disability payments, worker's compensation, gifts, loan proceeds, or Child Tax Credit payments. Dependents' job income is counted only if they are required to file a federal return. If they file only to get a refund when not required to file, HealthCare.gov says that income is not counted.
Whose income goes on the application?
For most people, the household is the tax filer, spouse, and tax dependents, including dependents who do not need coverage. That is why a child on a parent's return can affect the parents' MAGI even if the child has a job. Confirm tax-filing status with a tax professional if you have a split household, a dependent parent, or a recent marriage.
Income is only one part of credit eligibility. See how much income qualifies for a subsidy and self-employed coverage in Lakeland.
What about business expenses and retirement withdrawals?
Self-employment income is generally net of ordinary business expenses, not gross sales. Do not double-count farming income as both farm and self-employment. Retirement-account withdrawals other than qualified Roth distributions generally count. Those two categories cause many Lakeland applications to drift from a simple wage estimate.
If you take Social Security and still work, include both. HealthCare.gov says to enter Social Security as the full amount before deductions. SSI remains out. Mixing those programs is a common error on applications for people who recently retired.
When MAGI is hard to project, update during the year instead of waiting for a surprise on Form 8962. A licensed Florida health agent can help you keep the application aligned with the coverage you are using.
Common questions
Does Social Security count for Marketplace income?
HealthCare.gov says to include both taxable and non-taxable Social Security income, entered as the full amount before deductions. Do not add SSI.
Do I count my teenager's summer job?
Count a dependent's income only if that dependent is required to file a federal tax return.
Does unemployment count as income for Marketplace coverage?
Yes. Unemployment compensation counts toward household income for Marketplace savings.
What to do next
List every household member on the tax return, then project the MAGI categories for the coverage year. Update HealthCare.gov when the projection changes. David Huff, a licensed Florida health agent, can help you match the application to the plan you are considering. Call (863) 640-3102 or use Get Help.
- Self-employed health insurance
- How self-employed people get coverage in Florida
- Polk County ACA agent
Match the income estimate to the tax household
Bring last year's return if you have it and a current-year projection. This is not tax preparation.
Request a Plan Review Call (863) 640-3102Sources
This page summarizes HealthCare.gov MAGI instructions for education. Tax treatment of a specific withdrawal, business expense, or filing status should be confirmed with a qualified tax professional.