Estimate your income the Marketplace way
Self-employed income is hard to pin down — and the Marketplace uses your MAGI, not your take-home pay. This free calculator helps you estimate your annual MAGI (and the deductions that lower it), then shows where you land for a 2026 subsidy. It's an estimate, not tax advice.
What counts as income — and what doesn't
The Marketplace looks at your Modified Adjusted Gross Income (MAGI), not your take-home pay. Overestimate and you leave savings on the table; underestimate and you can owe money back at tax time.
Counts toward MAGI
- Wages, salary, and tips
- Self-employment / freelance income (after business expenses)
- Social Security benefits (retirement or disability)
- Unemployment compensation
- Rental income
- Investment income and capital gains
- Taxable interest and dividends
- Retirement distributions (401(k), IRA, pension)
Does not count
- Child support received
- Supplemental Security Income (SSI)
- Veterans' disability payments
- Workers' compensation
- Gifts or inheritances
- Life-insurance payouts
- SNAP / food-stamp benefits
- Proceeds that are a return of principal
What is MAGI, and where do I find it?
For most people the formula is simple:
Adjusted Gross Income (AGI) + Tax-exempt interest + Untaxed Social Security = MAGI
If you've filed before, these lines on your return do most of the work:
| Form / line | What it shows |
|---|---|
| Form 1040, Line 11 | Adjusted Gross Income (AGI) |
| Form 1040, Line 2a | Tax-exempt interest income |
| Form 1040, Line 6b | Taxable Social Security benefits |
| Schedule C, Line 31 | Net profit or loss from self-employment |
| Schedule SE | Self-employment tax |
Estimating variable income
If your income swings month to month, average your last 2–3 tax years, or take a realistic monthly figure and multiply by 12. Had an unusually bad or good year? Project this year rather than relying on the past alone — and keep records (invoices, bank statements) to support your estimate.
What the FPL bands mean in 2026
The ACA ties premium help to your income as a percentage of the federal poverty level. In 2026, with the enhanced subsidies expired, the old rules — including the 400% "subsidy cliff" — are back:
| % of FPL | What it generally means for 2026 |
|---|---|
| Under 100% | Below the subsidy floor. Because Florida hasn't expanded Medicaid, this can be a coverage gap — though children often qualify for Florida KidCare or Medicaid. |
| 100%–150% | The largest subsidies, plus strong Cost-Sharing Reductions on Silver plans. |
| 150%–250% | Solid premium subsidies and valuable CSR-enhanced Silver plans (lower deductibles). |
| 250%–400% | Premium subsidies that phase down as income rises. |
| Over 400% | The cliff is back in 2026 — no premium tax credit, so you pay the full premium. Strategy (HSA, retirement contributions) can sometimes bring you back under. |
Estimating income, answered
What if my income changes during the year?
Start with your best estimate, then update your Marketplace account if things change significantly — that keeps your subsidy accurate and avoids a surprise at tax time.
Do I include my spouse's income?
Yes, if you file jointly. Even in the unusual case of filing separately, the Marketplace still counts your spouse's income for eligibility.
What if I'm self-employed and had a bad year?
Use a current-year projection, not just last year's taxes. If this year is genuinely lower, that lower estimate can improve your subsidy — just keep records to back it up.
Does Social Security count?
It depends. On its own it may not affect your MAGI, but combined with other household income a taxable portion can be included.
What if I didn't file taxes last year?
You don't need a prior return to apply. What matters is that you agree to file a tax return for the year you receive coverage, so the subsidy can be reconciled. Estimate from pay stubs, bank statements, invoices, or client records — and we can help you sanity-check it.
Does alimony count as income?
Only for older divorces. Alimony counts toward MAGI only if your divorce or separation agreement was finalized before 2019. For agreements from 2019 on, alimony is neither income to the recipient nor a deduction for the payer under federal tax law.
Want your real, after-subsidy price?
An estimator gets you close. To see the actual plans and prices you qualify for — and how to manage your income to keep help — send us your numbers and we'll run them free.
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