Is worker's compensation included on Marketplace applications?

Is worker's compensation included on Marketplace applications?

• A. No
• B. Yes
• C. Yes, only if taxed
• D. Included for dependents

Answer: (A)

When determining eligibility for Marketplace premium tax credits, income is counted using MAGI. Certain benefits are excluded from MAGI, and worker’s compensation is one of them. Because of that, worker’s compensation does not count toward the income used to calculate subsidies, so it’s not included on the Marketplace income calculation. You may still report it as a source of income for completeness, but it won’t affect the subsidy amount. Other income types (like wages or unemployment) do count toward MAGI, which is why the correct stance is that worker’s compensation is not included.

When determining eligibility for Marketplace premium tax credits, income is counted using MAGI. Certain benefits are excluded from MAGI, and worker’s compensation is one of them. Because of that, worker’s compensation does not count toward the income used to calculate subsidies, so it’s not included on the Marketplace income calculation. You may still report it as a source of income for completeness, but it won’t affect the subsidy amount. Other income types (like wages or unemployment) do count toward MAGI, which is why the correct stance is that worker’s compensation is not included.