ACA / Marketplace Household Income Rules
Topic | ACA / Marketplace Rule |
Who is counted | Tax filer + spouse (if filing jointly) + tax dependents |
Roommates | Not included unless claimed as a tax dependent |
Income measure | Modified Adjusted Gross Income (MAGI) |
Age rule | No age requirement — depends on federal tax household status |
Basis | Federal tax law and ACA Marketplace eligibility rules |
Source: The Marketplace household generally includes the tax filer, spouse (if applicable), and tax dependents. (HealthCare.gov)
What Income Is Included in MAGI?
Modified Adjusted Gross Income (MAGI) is used to determine eligibility for Marketplace savings and certain ACA programs.
MAGI start with Adjusted Gross Income (AGI) and adds back:
Tax-exempt interest
Non-taxable Social Security benefits
Untaxed foreign income
MAGI may include:
✅ Wages and salary
✅ Self-employment income
✅ Interest income
✅ Taxable Social Security benefits
✅ Foreign income (if applicable)
✅ Other taxable income reported on the federal tax return
Source: Marketplace MAGI methodology. (HealthCare.gov)
Example
Employee wages: $55,000
Spouse wages: $30,000
Interest income: $2,000
Estimated Household Income (MAGI): $87,000
Where Employees Can Find This Information
Employees can estimate household income using:
Prior year federal tax return
W-2 forms
Pay stubs
1099 forms
Other income documentation
Important Note
Household income for ACA Marketplace purposes is based on federal tax household rules and MAGI calculations, not simply everyone living in the home. Employers generally should not provide tax advice. Employees with questions about their household income should consult a tax professional.
References
Health Insurance Marketplace Household Size Rules (HealthCare.gov) (HealthCare.gov)
HealthCare.gov – “What’s included as income” (MAGI guidance) (HealthCare.gov)
HealthCare.gov – MAGI Glossary Definition (HealthCare.gov)