Premium tax credits · Income
What counts as income for a Marketplace tax credit?
Your 2027 savings depend on the income you expect in 2027, so getting the estimate right matters more than ever now that excess credit must be paid back in full.
Your info goes to Nexus only and is never sold. Not to a call center, not to a list of “partners.”
- Expected 2027 income
- MAGI, not take-home pay
- Report changes
Check my 2027 estimate
Your info goes to Nexus only. Never sold. No pitch, no obligation.
Count these
- Federal taxable wages, tips, and unemployment compensation.[1]
- Self-employment income after business expenses.[1] See the self-employed deduction.
- Social Security, taxable and non-taxable, before deductions, and Social Security Disability Income (SSDI).[1]
- Most IRA and 401(k) withdrawals and pensions (not qualified Roth distributions), capital gains, interest and dividends, including tax-exempt interest, and net rental income.[1]
- Alimony from divorces finalized before January 1, 2019.[1]
Don’t count these
- Child support, gifts, loan proceeds, Supplemental Security Income (SSI), veterans’ disability payments, workers’ compensation and Child Tax Credit payments.[1]
- Alimony from divorces finalized on or after January 1, 2019.[1]
Whose income
The household is usually the tax filer, a spouse, and tax dependents, including those who don’t need coverage.[1] Count a dependent’s income only if they’re required to file a federal tax return.[1]
Why it matters for 2027
- Credits generally require household income from 100% to 400% of the federal poverty line.[2] For 2027 coverage, 400% is $63,840 for one person and $132,000 for four.[3]
- Starting with tax year 2026, you repay all excess advance credit.[4]
- If income goes up during the year, report it as soon as possible; otherwise you’ll pay back the difference at tax time. If it goes down, you may qualify for more savings or Medicaid.[5]
Near the line? See Medicaid or Marketplace and ACA subsidies for 2027.
General information, not tax advice.
Sources
- HealthCare.gov, What to include as income. https://www.healthcare.gov/income-and-household-information/income/
- IRS, Eligibility for the Premium Tax Credit. https://www.irs.gov/affordable-care-act/individuals-and-families/eligibility-for-the-premium-tax-credit
- HHS ASPE, 2026 Poverty Guidelines (used for 2027 coverage). https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines
- 26 U.S.C. §36B and notes (Pub. L. 119-21 §71305, effective for tax years after Dec. 31, 2025), Cornell LII. https://www.law.cornell.edu/uscode/text/26/36B
- HealthCare.gov, Reporting income & household changes after you’re enrolled. https://www.healthcare.gov/reporting-changes/
Checked October 16, 2026. 2027 Marketplace plans and final 2027 rates aren’t published yet; we’ll update this page when they are.
Frequently asked questions
What income is used for ACA subsidies?
Modified adjusted gross income (MAGI): adjusted gross income plus untaxed foreign income, non-taxable Social Security benefits and tax-exempt interest, estimated for the year of coverage.
Does Social Security count as income for the Marketplace?
Yes, both taxable and non-taxable Social Security, before deductions. Supplemental Security Income (SSI) does not count.
Does child support count as income?
No. Child support, gifts, loan proceeds, SSI, veterans' disability and workers' compensation are not counted.
What if my income changes during the year?
Update your Marketplace application as soon as possible. If income rises and you don't report it, you'll repay the difference when you file taxes.
Will you sell my information?
No. Your information goes to Nexus Benefit Solutions only and is never sold.