Estimate the year you want coverage
Marketplace savings use expected household income for the coverage year, rather than simply copying last year's earnings. A recent tax return can provide a starting point, but a new job, changing hours, or different business earnings may make the old total a poor forecast.
The Marketplace uses modified adjusted gross income, or MAGI. This generally begins with adjusted gross income and adds certain items, including tax-exempt interest, untaxed foreign income, and nontaxable Social Security benefits. Use the official income guide for the types of income you receive.
Identify the people in your household
A Marketplace household usually includes the tax filer, a spouse, and tax dependents, even when someone does not need coverage. Simply sharing an address does not automatically make a roommate part of that household. There are exceptions, so check the official household chart when custody, unmarried partners, dependent status, or separation makes the answer less straightforward.
Answer the application questions about dependents' income carefully. Whether a dependent is required to file a federal return can affect whether that income is counted.
Fictional example: seasonal hours
Marisol is creating an estimate while working a quieter season. She lists earnings already received, the shifts she reasonably expects during the busy season, and a possible project that is still unconfirmed. She writes the project separately instead of silently treating it as certain.
Her worksheet has a date, a source for each number, and a short explanation of why she expects her hours to change. When the project becomes confirmed, she revisits the worksheet and updates her Marketplace information. This example describes an organizing method, not an eligibility result.
Practical estimate checklist
A useful estimate should be explainable. You do not need to predict every hour perfectly, but you should be able to show how you reached the annual total.
- List each household income source before entering a combined figure.
- Separate actual earnings so far from expected earnings later.
- Use the official guide to check what counts and what does not.
- Write down changes that would trigger a review of the estimate.
- Keep pay records or other documents supporting your assumptions.