Tax Household

Your tax household is the group of people included on your federal income tax return: you as the filer, your spouse (if filing jointly), and anyone you claim as a tax dependent. The Marketplace uses your tax household to determine your eligibility for premium tax credits and cost-sharing reductions.

For most families, your tax household and your general "household" are the same thing. But the tax household definition follows IRS rules specifically, which matters in a few common situations.

If you're married, you generally must file jointly to claim premium tax credits (with limited exceptions for domestic abuse or spousal abandonment). If you file separately, you typically can't get subsidies, which could mean paying full price for your Marketplace plan.

For dependents: anyone you claim as a tax dependent is part of your tax household, and their income counts toward your household's Modified Adjusted Gross Income (MAGI). This includes children, and in some cases, other relatives. A child who earns income from a part-time job but is still your dependent, their income is added to yours for subsidy calculations.

If your tax situation changes during the year (you get married, divorced, or a dependent leaves your return) report it to the Marketplace right away. These changes affect your tax household size, which changes your FPL percentage, which changes your subsidy amount. Waiting until tax time to reconcile a major household change can result in owing back a significant portion of your advance premium tax credit.