INCLUDING NON-TAXABLE INCOME

One of the first and most common errors individuals make is including non-taxable income in their estimates. Remember, only taxable income counts towards the calculation on Healthcare.gov. This means that income from gifts, inheritances, and certain other non-taxable sources should not be included in your estimate.

FORGETTING SEASONAL OR INTERMITTENT INCOME

If you have a seasonal job, work freelance gigs, or earn commission, it’s easy to overlook this income, especially if it’s not consistent. It’s essential to project your income over the entire year, even if you’re only earning for a portion of it.

OVERLOOKING ALL HOUSEHOLD MEMBERS

When estimating income for Healthcare.gov, you need to consider the combined income of all the individuals in your household who are required to file a tax return. This might include a spouse or a working dependent. Leaving out any family member’s income can lead to a significant underestimation.

NOT UPDATING INCOME ESTIMATES

Life is unpredictable. You might get a new job, a raise, or, unfortunately, face a job loss. It’s vital to update your income estimates on Healthcare.gov whenever there’s a significant change in your earnings to ensure you’re receiving the appropriate benefits.

MISJUDGING SELF-EMPLOYMENT INCOME

For self-employed individuals, estimating income can be particularly tricky. It’s not just about your revenue; you have to subtract your business expenses to determine your net income. Overestimating expenses or underreporting revenue can lead to inaccuracies.

FORGETTING INTEREST AND DIVIDENDS

Investments, even if they seem minor, can contribute to your taxable income. Interest from savings accounts or dividends from stocks should be included in your estimate.

IGNORING ONE-TIME INCOME BOOSTS

Did you get a bonus at work? Or perhaps you sold an asset, like a car or shares, which resulted in a one-time profit. Such sporadic income boosts, though not regular, still count towards your annual income.