How to Estimate of Your Expected Income for Self-Employed Individuals
· Do your best to estimate your self-employment income and expenses for the year accurately, based on your past experience, realistic expectations, industry standards, and other information.
· During the year, if it looks like your yearly net income will be higher or lower than you estimated, update your Marketplace application as soon as possible.
On your Marketplace application, you’ll report your net income from your self-employment. (Net income is sometimes called "profit.")
If your self-employment income is higher than your business expenses, you report this net income.
If your business expenses are higher than your income, you report a net loss.
Your net income from self-employment is what you report on Schedule C of your federal tax return. Learn about self-employment income from the IRS (PDF).
Income information from your Schedule C will carry over to your individual tax return, combine with other income sources like a spouse’s employment income to figure in to your household AGI.
To get your Modified Adjusted Gross Income, you get DEDUCT the following:
· HSA Contributions
· IRA Contributions
· Half of the self-employment tax that you pay
· Your business expenses should already be deducted by this time. If you healthcare premiums are deducted as a business expense, you can deduct them here.
Then, add the following types of income to get your final Modified Adjusted Gross Income:
Tax-exempt foreign income
Tax-exempt Social Security benefits (including tier 1 railroad retirement benefits)
Tax-exempt interest
Read more about reporting self-employed income here: https://www.healthcare.gov/self-employed/income/