11/24/2025
What Income Counts When Applying for ACA Subsidies?
ACA financial assistance is based on household income, specifically your Modified Adjusted Gross Income (MAGI). This includes wages, self-employment income, tips, unemployment benefits, Social Security (taxable portion), overseas income you exclude on taxes, and passive income such as interest, dividends, and rental profit. Gross revenue is irrelevant; only taxable profit matters.
The Marketplace compares your projected income to the Federal Poverty Level (FPL) to calculate your premium tax credit. Under-reporting income leads to repaying subsidies at tax time. Over-reporting reduces the support you receive and increases your monthly premium unnecessarily. Accurate estimation is the only way to protect the subsidy you qualify for.
Open Enrollment for 2026 runs from Nov 1, 2025 to Jan 15, 2026. Enroll by 12/15/2025 for coverage starting 1/1/2026. For enrollment assistance, contact Ngoc Do – 281-858-3404.
