Question: How do you project income for plan year 2021 if you are currently unemployed and collecting unemployment insurance? If you the application is asking for proof of income from this projection, how does one supply proof of income?
Answer: Similar to advice offered by HealthCare.gov, the Exchange offers the following advice:
Step 1. Start with your household’s adjusted gross income (AGI) from your most recent federal income tax return. You'll find your AGI on line 7 of IRS Form 1040.
Don’t have a recent AGI? See another way to estimate your income.
Step 2. Add the following kinds of income, if you have any, to your AGI:
- Tax-exempt foreign income
- Tax-exempt Social Security benefits (including tier 1 railroad retirement benefits)
- Tax-exempt interest
*Don’t include Supplemental Security Income (SSI).
Step 3. Adjust your estimate for any changes you expect.
Consider things like these for all members of your household:
- Expected raises
- New jobs or other employment changes, including changes to work schedule or self- employment income
- Changes to income from other sources, like Social Security or investments
- Changes in your household, like gaining or losing dependents. Gaining or losing a dependent can have a big impact on your
Now you have an estimate of your expected income.
It’s hard to predict your income if you’re unemployed, self-employed, on commission, or on a work schedule that changes regularly.
If your income is hard to predict, base your estimate on your past experience, recent trends, what you know about possible changes at your workplace, and similar information. If the job is new to you, ask people in the same field or in the same company about their experiences.
Get help estimating income and expenses with HealthCare.gov’s income calculator. Learn more about how to estimate your expected income if you’re:
And similar to HealthCare.gov, proof of income can be:
- 1040 federal or state tax return. Note: It must contain first and last name, income amount, and tax year. Starting with 2018 tax returns, if you file Schedule 1, you must submit it with your 1040. Schedule 1 shows additional income and adjustments, like capital gains, unemployment compensation, student loan interest, or self-employment tax.
- Wages and tax statement (W-2 and/ or 1099, including 1099 MISC, 1099G, 1099R, 1099SSA, 1099DIV, 1099SS, 1099INT). Note: It must contain your first and last name, income amount, year, and employer name (if applicable).
- Pay stub. Note: It must contain your first and last name, income amount, pay period or frequency of pay with the date of payment. If a pay stub includes overtime, please indicate average overtime amount per
- Self-employment ledger documentation (can be a Schedule C, the most recent quarterly or year-to-date profit and loss statement, or a self-employment ledger). Note: It must contain your first and last name, company name, and income amount. If you’re submitting a self-employment ledger, include the dates covered by the ledger, and the net income from profit/loss.
- Social Security Administration Statements (Social Security Benefits Letter). Note: It must contain first and last name, benefit amount, and frequency of
- Unemployment Benefits Letter. Note: It must contain your first and last name, source/agency, benefits amount, and duration (start and end date, if applicable).