In determining eligibility for exchange subsidies, income is based on your attestation of your expected income in 2015 and verified by the exchange with documentation from your most recent tax return and/or pay stubs, with consideration for reasonable changes you expect.
Federal subsidies are based on the size of your household and your household’s 2015 Modified Adjusted Gross Income, although most people can simply use the Adjusted Gross Income from their 1040 form as a good baseline for an estimate.
Household income includes the total incomes of the taxpayer and any spouse and dependents.
To estimate your 2015 Modified Adjusted Gross Income:
- Add all income earned through wages, interest, dividends, rental and royalty income, capital gains, business income, farm income, unemployment and alimony.
- Add any foreign income, employer-paid adoption expenses and interest from employee savings bonds used to pay higher education expenses.
- Subtract items like moving expenses, alimony paid, self-employment taxes.
Subsidies are applied immediately, so you only pay the net amount after the subsidy.
Colorado residents who need help getting their Advance Premium Tax Credits & Federal Subsidies to reduce the cost of their health insurance may request assistance.