- Am I eligible for subsidies?
- Am I in the 'coverage gap'?
- Should I buy off of the exchange?
Enter your household pre-tax income. This is your modified adjusted gross income (MAGI), but the calculation for it is specific to the Affordable Care Act. For most people, AGI (from form 1040) is equal to MAGI for subsidy calculations. But if you have any tax-exempt Social Security income, tax-exempt interest income (eg., from municipal bonds), or foreign earned income and housing credits if you're living abroad, you'll need to add those amounts to your AGI to get your MAGI.
Your MAGI is based on household income. Include income from all household members who are on your tax return, as long as their income is above the tax filing threshold, regardless of whether or not they are going to be on the health insurance policy. If you have young adult children who are going to be on your policy, you'll include their income even if you do not claim them on your tax return.
Subsidy eligibility extends to households with incomes up to 400% of federal poverty level, but there are other factors involved in determining subsidies, so not all households in that income range will qualify for subsidies. The subsidy calculator will help you determine whether you qualify for a subsidy, and if so, how much it will be.
If employer-sponsored coverage is available to you AND it costs less than 9.5% of your income for employee-coverage only, anyone in your household who is eligible for that plan is NOT eligible for subsidies. Be sure to talk to your company's human resources representative or your accountant to confirm your eligibility status.