Friday, October 9, 2015

What qualifies as income? Will social security, interest, dividends or capital gains be included?


Question: What qualifies as income? Will social security, interest, dividends or capital gains be included?


Answer: The subsidy you receive for insurance purchased on an exchange is based on your modified adjusted gross income. For most people, that is the same as the adjusted gross income you report on your tax return. On Form 1040EZ, it is the amount on line 4, on Form 1040A it is the amount on line 21, and on Form 1040, it is the amount on line 37. (If you have certain sources of additional income, you have to add them back to calculate modified adjusted gross income, including nontaxable Social Security payments, tax-exempt interest, and foreign-earned income.) Adjusted gross income includes Social Security payments, interest, dividends, and capital gains. You can find a summary of all items it includes by clicking here.


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  • What happens if my income changes after I receive my insurance policy?
  • Robert I. Field, Ph.D., J.D., M.P.H. is a professor of law at the Earle Mack School of Law and professor of health management and policy at the School of Public Health at Drexel University. He also writes for The Field Clinic blog. Ask Rob your questions about the new healthcare law.

    Professor, Earle Mack School of Law & Drexel School of Public Health
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