When calculating your income for your health insurance plan, you should use the amount you expect to earn in the year you will have the plan. This means, for your 2024 health insurance plan, enter the amount you expect to earn in 2024.
It can be tricky for freelancers and people who are self-employed, so here are some tips for calculating your expected annual income.
1. Enter your monthly income
If you don't receive an annual salary, choose to enter the amount you typically earn in a month.
2. Use your 2023 income as a starting point
If you don't know exactly what you'll earn, that's okay. If you expect to earn about what you earned in 2023, use your 2023 income.
3. Report changes
If you start earning more or less than you expected to earn during 2023, you can report a change during the year. This will ensure the subsidies you're eligible for are up to date. Catch can make the process easy and help you save on your coverage or avoid a surprise tax bill down the road.
4. Don't forget about expenses and deductions
Be sure to include any business expenses or deductions as part of your "net self-employment income." You can also deduct things like IRA contributions and student loan interest. Learn more about deductions here.
What counts as income?
Anything you earn from work, including W2, self-employed or 1099 work can count towards your income. Unemployment and income from other members of your household (including those not applying for coverage) should also be counted. For a more detailed guide to calculating your Modified Adjusted Gross Income (MAGI), see this guide.