Benefits. Simplified.

Your premium tax credits are based on the income you estimate for Exchange/Marketplace coverage. If your actual income is higher than what you reported, you may have to repay some or all of the credits you received during the year. If your income ends up lower, you might qualify for an additional credit when you file your federal tax return. Being as accurate as possible can help you avoid unpleasant surprises at tax time and choose a plan that truly fits your situation.

When you estimate your income, try to include all expected sources, such as wages, self‑employment income, and other taxable income for everyone in your household. Think about changes that might happen during the year, like a new job, a raise, or a change in hours, and factor those into your estimate. If your situation changes after you enroll, it’s a good idea to update your Marketplace application so your premium tax credits can be adjusted during the year.

Many Marketplace calculations are based on Modified Adjusted Gross Income (MAGI), which is related to, but not always the same as, the Adjusted Gross Income (AGI) on your tax return. The rules about what counts as income for your household can be complex and may vary depending on your situation. For specific questions about which income sources to include, or how MAGI and AGI are calculated for your family, it’s wise to talk with a qualified tax professional who can look at your full picture.