The application wants household MAGI for the full calendar year. Net, always: self-employment income counts after business expenses ($30,000 of invoices with $12,000 of costs is $18,000 of income). The whole calendar counts; the tax household counts.
| Line | Worked case (Priya) | Your numbers $ |
|---|---|---|
| Wages through your last day | counted | |
| Severance or payout | counted | |
| Unemployment benefits | counted | |
| Interest and dividends | counted | |
| Spouse's salary (if filing jointly) | counted | |
| Net profit from the business (after expenses) | to $30,000 total | |
| Estimated household MAGI, full year | $30,000 |
2026 coverage uses the 2025 federal guideline: $15,650 single (400% = $62,600); $84,600 for a household of two at 400%. Priya: $30,000 / $15,650 = 192% of poverty.
Your MAGI: $ / poverty line $ x 100 = % of poverty
| Income as percent of poverty | You pay, as percent of income | Interpolation note |
|---|---|---|
| Under 133% | 2.10% | |
| 133% to 150% | 3.14% to 4.19% | |
| 150% to 200% | 4.19% to 6.60% | Priya at 192% lands about 6.2% |
| 200% to 250% | 6.60% to 8.44% | |
| 250% to 300% | 8.44% to 9.96% | |
| 300% to 400% | 9.96% | Marcus at 396%: full 9.96% |
| Above 400% | No subsidy at any price | The cliff |
Annual share: MAGI $ x % = $ /yr Monthly: $ /mo (Priya: $30,000 x 6.2% = $1,860/yr = $155/mo)
| Line | Worked case | Your numbers |
|---|---|---|
| Benchmark silver premium (second-lowest-cost silver in your area) | $625/mo | $ |
| Your required share (from section 3) | $155/mo | $ |
| Monthly subsidy (benchmark minus share) | $470/mo | $ |
| Apply it anywhere: a $456 bronze with a $470 subsidy | $0/mo | $ |
| Cost-sharing reductions (below 250% of poverty, silver only) | deepest shrink the average silver deductible to $80 vs the standard $5,304 | ☐ applies to me |
Cliff distance: $62,600 (or $84,600 for two) minus my estimate = $
Since 2026 the repayment caps are gone: excess advance subsidy is repaid in full at tax time (a $60,000 estimate landing at $66,000 owes back roughly $1,500). The one surviving exception: if actual income would have made the household Medicaid/CHIP eligible, no repayment. Overestimating is the safe error: a $70,000 projection finishing at $45,000 collects the correct subsidy as a refundable credit.
The cliff is measured on the calendar year, and by November you usually know. If the year is landing over the line: choose a cheaper metal, price the spouse plan, or hold the COBRA option differently, all inside open enrollment (November 1 to mid-January).
| Month | Updated MAGI estimate $ | Distance from cliff $ | Marketplace updated? |
|---|---|---|---|
| ☐ | |||
| ☐ | |||
| November | ☐ |