ACA health insurance
Self-employed and buying ACA coverage: which income number to use
If you work for yourself, estimate your income after business expenses, not your total sales. Then update it as the year goes, since self-employment income rarely lands where you first guessed.
What to use
- Net profit from your business, which is what you earned after allowed expenses.
- Other income in your household, such as a spouse's wages.
- Some deductions are counted differently for Marketplace purposes. A tax preparer can tell you which apply to you.
Handling a slow or busy year
If your income swings, pick the number you think is most likely, and check it again mid-year and in the fall. Updating in the fall helps prevent a large repayment at tax time or an overpayment of premiums.
Have this ready when you call
- Your profit and loss statement
- Last year's Schedule C, if you have one
- Your best guess for this year's net income
- Other household income
Common questions
Can I deduct what I pay for health insurance?
Self-employed people can often deduct health insurance premiums on their tax return, and the rules interact with the savings calculation. Ask a tax professional.
What about gig and 1099 work?
The same idea applies. Estimate what you will keep after expenses, and update the estimate during the year.
Related answers
Rather talk it through?
Call 855-367-1095 and a licensed agent will go through your situation with you. There is no charge to ask, and no obligation to enroll.
- Licensed insurance help
- No guaranteed eligibility, pricing, or availability
- Educational starting point
Information on this site is educational and does not guarantee eligibility, enrollment, pricing, or availability. It is not a recommendation to buy any specific plan or policy.