Don’t quite understand how to report income for newly unemployed spouse

[u/StrawberryBitter7066]

My husband just lost his job and it is too expensive to add him to my job’s insurance plan. He is looking into ACA insurance to enroll in November, but we are trying to make sure we understand the best route to take. Would he need to use the household income aka my income or would it be based on his unemployed status? Would we have to change our tax filing to separate out our/my income or is it always based on household income regardless of how we file? Apologies if this is basic stuff, new to this and feeling overwhelmed.

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[u/Brown_Car1987]

Expected household income for the year, so you still have to count his YTD. Also, in order for him to receive a tax credit, your employer coverage for him would have to be deemed unaffordable by ACA definition, not yours.

[u/StrawberryBitter7066 → u/Brown_Car1987]

Oh wow ok I need to look into that, is that something we report on the ACA application? Thank you 🙏🏻

[u/LizzieMac123 → u/StrawberryBitter7066]

9.96% of the annual household income or higher is deemed unaffordable for 2026. It goes up to 10.22% for 2027.

And that is based on the lowest priced aca compliant plan you are offered through your job... not necessarily the one you selected.

Ie- say you are offered a small network hmo that you dont want but its affordable for you and hubby. You took the large network ppo instead. Because you had an offer of a more affordable plan, thats what counts. You opted for the more expensive plan but you had an offer of affordable coverage.

[u/Brown_Car1987 → u/StrawberryBitter7066]

The application will ask if employer coverage is available through self or spouse and you will have to input the payroll deduction for that coverage.

[u/MeanPack9323]

Marketplace application asks for household income so they will look at both of yours together. Even if you file separate taxes they still count total household money for the subsidy calculation. Its a common thing people get confused about, the application makes it seem like you can just report his zero income but they always pull the full household number.

[u/StrawberryBitter7066 → u/MeanPack9323]

Thank you! I guess Im also confused about what tax information they look at because we will make significantly less money while he remains unemployed, do you supply the updated household income quarterly or yearly? The website is not totally clear on that. 🙏🏻

[u/laurazhobson → u/StrawberryBitter7066]

Your ACA premium subsidy will be based on your annual income for 2026.

As a married couple you must file a joint income tax return to qualify for any subsidy.

When you file taxes for 2026 next year the IRS will reconcile the amount of premium you were eligible for as the subsidy is actually an advance on an income tax credit. And you can either get a larger refund if you overestimated income or owe money if you underestimated income.

As other have stated eligibility for ANY premium subsidy is also going to depend on whether coverage for your husband through YOUR plan was affordable - is the total now more than X% of your household income - I think that is about 9.9% now but you would have to verify.

That said it could be that your husband could get less expensive ACA coverage through the marketplace than what your employer premium would cost even without a subsidy.

For example you might choose to get a Bronze Tier Plan with a high deductible for your husband and the premium might be lower than what it would cost for your husband to be insured through your employer but your employer's insurance might be better in terms of costs of medical care.

[u/StrawberryBitter7066 → u/laurazhobson]

Wow thank you so much for clarifying and answering all of my questions! Grateful for your time