When applying to purchase health insurance on the federal marketplace, a consumer must report which type of income?

• A. Alimony paid out by consumer
• B. Child support received
• C. Capital gains
• D. Gifts

Answer: (B)

When applying for health insurance on the federal marketplace, income used to determine eligibility is MAGI, which is based on money your household is expected to have in the year. You must report income that counts toward MAGI, because it affects subsidies and eligibility.

Child support received is money that enters the household and is included in MAGI for these calculations, so it must be reported. Alimony paid out by you isn’t income to you, so it isn’t reported as such. Gifts are generally not counted as income for MAGI purposes, and while capital gains are part of your taxable income, the item the marketplace specifically asks applicants to include in this context is child support received.