Income Reporting Tips
Current income includes the salary, wages, and earnings from self-employment that you receive in a given month.
To see if you qualify for financial help, you need to report your household's income. Any income you, your spouse or your dependents receive should be included on the MNsure application.
Adjustments (Tax Deductions)
Adjustments (also known as tax deductions) are expenses you incur (acquire) that can be subtracted from your current income and projected annual income. These adjustments decrease the amount of your taxable income.
If you claim adjustments, you include them in your adjusted gross income on your federal tax return. Your adjusted gross income can be found on line 4 of IRS Form 1040EZ, line 21 of IRS Form 1040A, or line 37 of IRS Form 1040.
If you claim, or expect to claim, any of the following adjustments on your federal tax return, they should be included on your MNsure application:
- Educator expenses
- Certain business expenses
- Health savings account deduction
- Moving expenses
- Deductible part of self-employment tax
- Self-employed SEP, SIMPLE, and qualified plan contributions
- Self-employed health insurance deduction
- Penalty on early withdrawal of savings
- Alimony paid
- IRA deduction
- Student loan interest deduction
- Tuition and fees
- Domestic production activities deduction
You can only include adjustments that you expect to include on the federal tax form for the year in which you are requesting coverage.
Projected Annual Income (PAI)
Projected annual income (PAI) is the total amount of household taxable income and adjustments (tax deductions) that you expect to have for the year in which you are seeking coverage. PAI is used to determine certain subsidies you might get through MNsure (premium tax credits, for example).
You may have to modify your PAI if you have certain types of non-taxable income (non-taxable interest income, for example). In many cases, your projected annual income will be the same as your adjusted gross income and can be found on line 4 of IRS Form 1040EZ, line 21 of IRS Form 1040A or line 37 of IRS Form 1040.
Important: If you experience a change in income, you should report it right away. Changes in income can affect your eligibility for financial help.
If you have any questions about how to report your income on the MNsure application, please speak with a tax professional. MNsure is not able to give guidance on tax filing or tax treatment of specific types of income.