Throw a Dart
Predict Future Income - Not the Past
If you are applying for subsidies to lower your premiums in the year 2027, simply Predict/Estimate your total house hold Gross income for the year 2027.
Do NOT look at previous taxes to predict future income unless your past income reflects your predicted future income in 2027.
If you believe it will be similar, line 11 of your 1040 is your AGI. Not everyone will have Modifications from their AGI, and so look to that as an indicator.
Just to be clear - You are being asked in 2026 to predict your future income in
2027 which you will file on your 2027 1040 (presumably) by April 15, 2028.
Explain your Prediction/Estimate
Once you have predicted your future 2027 income, then be ready to Tell me how you arrived at that number:
Example - If Predicting a $88,000 total household gross income (MAGI) for 2027.
Bob - $3,000 month Salary Job
Bob - $10,000 annual 1099 Self Employment
Sally - $1,500 month Social Security
Sally - $2,000 month Investment income.
Total = $88,000 Predicted/Estimated Total Gross Income
Be Prepared
Starting in 2026, you may be asked to upload Proof of your predicted income estimate if the IRS and/or other Partner Agencies notice a big variation in your income from the last 2 years, or have questions.
Reconciling Taxes
When you file your 2027 1040, the IRS will compare what you Predicted for your total house hold Modified Adjusted Gross Income (MAGI) , to what you filed on your taxes.
If you Predicted too low and received more subsidies than you were entitled to, they will recover the difference allowed.
If you Predicted too high and received less subsidies than you were entitled to,
they will give you an instant tax credit.
Simply do your best to Predict/Estimate your income as accurately as possible. We can always make adjustments throughout the year if things change.