How to Verify Self-Employment Income for ACA Insurance

If you’re self-employed, verifying your income for ACA health insurance can be a complex process. But it’s essential to do so accurately to ensure you receive the correct premium tax credit.

What is Self-Employment Income?

Self-employment income is any income you earn from working for yourself, such as:

Freelancing
Consulting
Running your own business
Gig work

Verifying Self-Employment Income

To verify your self-employment income, you’ll need to provide the following documents:

Schedule C (Form 1040): This form reports your self-employment income and expenses.
Bank statements: These statements show your income and expenses from your business.
Invoices: These documents show the amounts you’ve billed your clients.
Remittance advices: These documents show the payments you’ve received from your clients.

Be organized: Keep all your financial documents in order and easily accessible.
Estimate your income: If you don’t have tax documents for the current year, you can estimate your income based on your projected earnings.
Contact your clients: If you’re having trouble obtaining documentation from your clients, reach out to them directly.
Contact the marketplace: If you’re struggling to verify your income, contact the Health Insurance Marketplace for assistance. They can help you determine what documents you need and provide guidance on the verification process.

Verifying your self-employment income accurately is important for several reasons:

Premium tax credit: The amount of premium tax credit you receive is based on your income. Verifying your income ensures you receive the correct amount.
Eligibility for subsidies: Some ACA subsidies are only available to individuals with incomes below a certain threshold. Verifying your income ensures you qualify for the subsidies you’re eligible for.
Avoid delays: Providing accurate documentation can help avoid delays in your insurance application or renewal process.

Verifying your self-employment income for ACA health insurance may require some effort, but it’s essential to ensure you have the correct coverage and receive the appropriate premium tax credit. By following these tips, you can streamline the process and obtain the insurance you need.