QUESTION

My wife and I have a teenager who has a part-time job. Do we count her income as part of our household income when we apply for marketplace subsidies?

Individuals with no coverage | Eligibility for Premium Tax Credits and Cost-Sharing Reductions
ANSWER

The answer depends on whether your daughter earns enough income to be required to file a federal income tax return. Generally, children are required to file a return or pay taxes on their income if they have earned or unearned income of at least $12,400 (for tax year 2020). The marketplace automatically calculates whether the income of a child or tax dependent is countable in household income so it is important to include all sources of income on your application, whether or not you think it will ultimately count towards your total household eligibility. (IRS, Publication 929; Center on Budget and Policy Priorities,The Healthcare Assister’s Guide to Tax Rules).

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