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4. Household Income

In this section you will report current income for each person listed on your application. Do not report income no longer received. We will use each person's current income to calculate their projected annual income for the coverage year you are applying for. If you think the projected annual income will be different, you can provide us with a different amount.

Income to Report

MNsure estimates your household income to figure how much financial assistance you may get. The MNsure application will ask questions about household income for the year you want coverage, not last year’s income. You may use last year’s income to estimate income for the year you are seeking coverage, but you must make a best estimate on your expected household income to get the correct amount of financial help.

Depending on the income source, you may have an option to enter your income as monthly or yearly.

What if my household income changes during the year? 

Report income and household changes as soon as possible. If you don’t, you could end up with the wrong amount of financial assistance or even the wrong health insurance plan. You will need to contact the MNsure Contact Center, the Minnesota Department of Human Services or your county or tribal agency depending on which program you are eligible for. Read more about updating your income during the year.

Whose Income to Include

Most households include the tax filer, their spouse if they have one, and their tax dependents, including those who don’t need coverage. MNsure uses estimated income of all household members who are required to file a tax return, even if they are not applying for coverage.

Why do I need to include people in my household who don’t need insurance? 

MNsure marketplace savings are based on income for all household members, not just the ones who need insurance. 

If anyone in your household has coverage through a job-based plan, a plan they bought themselves, a public program like Medical Assistance (MA) or Medicare, or another source, include them and their income on your application. 

When you apply you’ll say which household members need coverage.

How Is Income Counted? 

MNsure uses “modified adjusted gross income” (MAGI) to determine the programs and savings you are eligible for. For most people, it’s identical or very close to adjusted gross income (AGI), which is a line on your federal tax return. MAGI is not a line on your federal tax return.

If an individual's current income hasn't changed from their most recent tax return, you can use that tax return as a guide on what types of income and deductions to report.

The application will compare the information you provide with information from the IRS, the Social Security Administration, the Minnesota Department of Employment and Economic Development and other sources. You will be asked to provide proof of the income if what you report is significantly different than the income from these sources.

Income Information

Select all the individuals who have income. "Income" is any of the following:

  • All taxable income. Taxable income is income you would list on lines 7-22 of a 1040 tax form. If you are not sure if a particular type of income is taxable, visit the IRS website at www.irs.gov.
  • All foreign earned income, including foreign earned income that is not taxable.
  • All interest income, including interest income that is not taxable.
  • All Title II Social Security benefits, including Title II income that is not taxable. Title II Social Security benefits include retirement, disability and Railroad Retirement benefits. Supplemental Security Income (SSI) is not Title II income.

Do NOT include other nontaxable income, such as:

  • Child support
  • Income from an ABLE account
  • Supplemental Security Income (SSI)
  • Worker's compensation
  • Veteran's payments

Income Details

Enter each household member’s current income. There will be a place to adjust projected annual income later in the application. 

Help with this section:

  • If a frequency other than “Yearly” is selected the application will calculate yearly income amount using the “Amount” and “Frequency" fields.
  • If "Wages before taxes" is selected for "Income Type", additional fields will appear for employer information.
  • Some income types such as unemployment only allow certain frequencies to be selected
  • The "Income Type" selection will only allow you to pick one income type at a time.
    • If a person has more than one income type, select "Yes" on the last question and you will be able to enter another income type and details.
    • If none of the income types apply, but the income would be listed as income on a 1040 tax return, select "Other taxable income."

Income Adjustments

Indicate if the person expects to have any income adjustments in the next 12 months. Income adjustments--also known as deductions--are expenses listed on the front page of the 1040 tax form that you can subtract from your gross income. Your gross income minus any adjustments is your "adjusted gross income."

The income adjustments listed on the MNsure application are below. The adjustments marked with an asterisk (*) may not reflect changes the IRS made to these particular adjustments in 2018.

  • Educator expenses: If you are an eligible educator, you can subtract up to $250 per year in qualified expenses. If you and your spouse are both educators, you can subtract up to $500 per year in qualified expenses. Qualified expenses are things you pay for like books, supplies, equipment and other materials used in the classroom. For more information see IRS Publication 529.
  • Certain business expenses of reservists, performing artists, and fee-basis government officials: If you are a member of the National Guard who travels more than 100 miles from home to perform services as a National Guard or Reserve member, you can subtract certain business expenses. If you are a performing artist or a fee-basis government official, you can subtract certain expenses. For more information, see IRS Form 2106.
  • Health savings account deduction: If you make contributions to your health savings account (other than employer contributions, rollovers, and qualified HSA funding distributions from an IRA) you may be able to subtract these. For more information, see IRS Form 8889.
  • *Moving expenses: If you are moving in connection with your job or business or to start a new job, you may be able to subtract some moving expenses. Your new workplace must be at least 50 miles farther from your old home than your old home was from your old workplace. If you had no former workplace, your new workplace must be at least 50 miles from your old home. For more information, see IRS Form 3903. NOTE: This deduction was modified beginning tax year 2018. Moving expenses are no longer deductible unless you are a member of the military moving under military orders.
  • Deductible part of self-employment tax: If you are self-employed and will owe self-employment tax, you may be able to subtract a portion of that tax. See IRS Schedule SE.
  • Self-employed SEP, SIMPLE and qualified plans: If you are self-employed or a partner in a business, you may be able to subtract some of these expenses. See IRS Publication 560 or, if you are a minister, Publication 517.
  • Self-employed health insurance deduction: If you are self-employed, a partner or receive wages from an S-corporation and are a more-than-2% shareholder you may be able to subtract these expenses. See the IRS Instructions for Form 1040 for more information.
  • Penalty on early withdrawal of savings: If you are being charged a penalty because of early withdrawal of savings, you can subtract this expense. For more information see the IRS Instructions for Form 1040.
  • *Alimony paid: If you are making payments to or for your spouse or former spouse under a divorce or separation instrument you may be able to subtract this expense. For more information, see IRS Publication 504. NOTE: For judgements made after December 31, 2018, neither spouse can include alimony on the tax return.
  • IRA deduction: If you are making contributions to a traditional IRA, and you have earned income, you may be able to subtract this expense. For more information, see the IRA Deduction Worksheet in the IRS Instructions for Form 1040.
  • Student loan interest deduction: You may be able to subtract up to $2,500 in annual interest from qualified student loans. For more information see the IRS Instructions for Form 1040.
  • *Tuition and fees: If you pay qualified tuition and fees for yourself, your spouse, or your dependent(s) you may be able to subtract up to $4,000 per year of qualified expenses. Do not subtract tuition and fees that you expect to take as a tax credit. For more information, see IRS Form 8917. NOTE: this deduction was eliminated at the beginning of tax year 2018.
  • *Domestic production activities deduction: You may be able to subtract up to 9% of qualified income from certain qualified activities. For more information, see IRS Form 8903. NOTE: this deduction was eliminated at the beginning of tax year 2018.

Income Adjustment Types 

Select all income adjustments the individual expects to have in the next 12 months.

Projected Annual Income 

Review each household member’s annual income calculation for the year you are seeking coverage. If you think that the annual income for a household member will be different than what is shown, select "No" for "Is this what you expect the annual income to be?" and enter the expected income when prompted. Common reasons why the calculated amount might not be accurate include year-end bonuses or seasonal work.

Depending on the calculated annual income for each applicant, you may see screens for: 

  • Additional Household Information (for those who may qualify for assistance based on other things besides income)
  • Additional APTC Program Information (for those who may qualify for advanced premium tax credits)

Additional Household Information

This section asks household questions that may vary depending on what program the household maybe potentially eligible for based on income. It also helps to determine if applicants qualify for assistance on grounds other than income. If you answer yes to any of these questions, you may be asked to provide more information, for example, if you say that someone in your household has a disability, you will need to provide some extra information about that disability.

For this section you may need: 

  • Details of disabilities for anyone in your household 
  • Details of any personal assistance services received by anyone in your household
  • Details of any program-specific information for anyone in your household

Additional Information for Medicaid/CHIP Applicants 

You’ll see this section if some of the people you are applying for appear to be eligible for Medical Assistance (Medicaid or Children's Health Insurance Program/CHIP). To ensure that these people get the right services, check the box under any person the question applies to.

Additional APTC Program Information 

You’ll see this section if some of the people you are applying for appear to be eligible for advanced premium tax credits (APTC). Check the box under any person the question applies to.

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