Please use these Resources for Determining Your Estimated Premium Subsidy
Estimate Your Income for 2025
To determine the premium subsidy–the Marketplace uses your "MAGI" (Modified Adjusted Gross Income). PLUS the full value of any Social Security Income. This is your total income. Line 11 on your 1040.
Include:
- W-2 wages, salary for All household members.
- Self Employment Income ( net) - Lines 8.
- Any, All Social Security Income – Line 6 A.
- IRA, Pensions, Dividends – Lines 2b,3b,4b,5b.
- Capital Gains line 7.
- Minus line 10 – Adjustments- like IRA contributions.
- LINE 11 plus 6a – MAGI – “Where the Subsidy Magic Lives”
Click on Image To Enlarge
Remember -- Your Premium Discount / tax subsidy is based on your ESTIMATED Income.
When you do your taxes for 2024 – the IRS will reconcile your ACTUAL with your ESTIMATE.
If LOWER -- You may get the difference in the subsidy calculation back on your tax.
IF Your Income is HIGHER – You will be responsible for the difference on your 2023 tax.
We suggest you check your Estimated Income - found on your eligibility statement with your actual income several times a year. NOBODY likes surprises on their tax return.
If you work with a tax professional or CPA, share this with them. In our view, as they do your return and work on your behalf with IRS; it the THEIR responsibility to work on this for you.
When you do your taxes for 2024 – the IRS will reconcile your ACTUAL with your ESTIMATE.
If LOWER -- You may get the difference in the subsidy calculation back on your tax.
IF Your Income is HIGHER – You will be responsible for the difference on your 2023 tax.
We suggest you check your Estimated Income - found on your eligibility statement with your actual income several times a year. NOBODY likes surprises on their tax return.
If you work with a tax professional or CPA, share this with them. In our view, as they do your return and work on your behalf with IRS; it the THEIR responsibility to work on this for you.
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