When you fill out a health insurance application with Pennie, you'll need to estimate your expected income for the next coverage year. Here’s what you need to know:
- Your ability to qualify for financial assistance to lower the cost of health coverage and care is based on your expected household income for the year you are seeking coverage, not last year's income.
- Income is counted for you, your spouse, and everyone you'll claim as a tax dependent on your federal tax return (if the dependents are required to file). You must include their income even if they don't need health coverage.
Step 1. Start with your household's adjusted gross income (AGI) from your most recent federal income tax return. You'll find your AGI on line 7 of your last year's IRS Form 1040.
Step 2. Add the following kinds of income, if you have any, to your AGI:
- Tax-exempt foreign income
- Tax-exempt Social Security benefits (including Tier 1 railroad retirement benefits)
- Tax-exempt interest
- Don't include Supplemental Security Income (SSI).
Step 3. Adjust your estimate for any changes you expect before you apply for coverage, or during the year as they occur.
- Consider the following factors for all members of your household:
- Expected raises
- New jobs or other employment changes, including changes to work schedule or self- employment income
- Changes to income from other sources, like Social Security or investments
- Changes in your household, like gaining or losing dependents. Gaining or losing a dependent can have a big impact on your savings.
Make sure to update your Pennie application within 30 days if your income changes during the year.