Shifting from 1099 contracting to W-2 employment (or running both at the same time) feels a lot like changing lanes on a busy highway: you want to avoid surprises, signal your intentions early, and check the mirrors. For many people, the insurance lane is the scariest: eligibility for marketplace subsidies, whether you can keep a contractor plan, how payroll pretax benefits affect your taxes, and whether you’ll owe money at tax time are all questions that suddenly matter.
This post walks you through the practical, tax-aware steps to take when your income mix changes. It’s written for real people — not actuaries — and includes clear comparisons, a helpful table, and a step-by-step checklist you can act on today. I researched authoritative guidance from the IRS, Healthcare.gov, the Department of Labor and established tax/financial advisors to make sure the tips are accurate and up to date. Two key resources I leaned on are linked where they matter most:
For how the Marketplace calculates household income (MAGI) and subsidy eligibility, see Modified Adjusted Gross Income (MAGI) on Healthcare.gov. (HealthCare.gov)
For rules and forms related to the self-employed health insurance deduction, see the IRS instructions for Form 7206 / self-employed health insurance deduction. (IRS)
Quick overview: what changes when you move from 1099 to W-2
Source of coverage: As a W-2 employee you’ll usually be eligible for employer-sponsored group coverage (often with employer premium contributions). As a 1099 contractor you buy individual coverage (Marketplace, private plan), or join a spouse’s plan. If you have both incomes in the same year you’ll be evaluated based on your combined household Modified Adjusted Gross Income (MAGI) for subsidy purposes. (KFF)
Subsidies & reconciliation: Marketplace premium tax credits (subsidies) are based on your MAGI estimate; if your mix of W-2 and 1099 income changes during the year, the amount of subsidy you’re eligible for can change and must be reconciled when you file taxes. That can increase or decrease your final tax bill. (IRS)
Tax treatment of premiums: Self-employed individuals can often deduct health premiums above the line (subject to rules), while W-2 employees usually receive employer contributions and pre-tax payroll deduction options that lower taxable wages. The tax mechanics are different and affect MAGI in different ways. (IRS)
W-2 vs 1099: the practical differences that matter for health insurance
W-2 (employee)
Employer may offer group coverage and pay part of the premium.
Employee premium portion is often deducted pre-tax (Section 125/cafeteria plan), lowering taxable wages and MAGI.
Access to employer HSAs/FSAs and possible employer HSA contributions.
If you leave the job, you may be eligible for COBRA continuation (usually expensive because you pay full premium + admin fee). (HealthCare.gov)
1099 (self-employed / independent contractor)
You buy your own plan (Marketplace, private, association) and may qualify for premium tax credits — but those credits are based on MAGI (remember: includes all income). (HealthCare.gov)
You may be able to take the self-employed health insurance deduction (an “above-the-line” deduction) which reduces your adjusted gross income, subject to eligibility rules. (IRS)
You don’t get payroll benefits like an employer HSA contribution unless you join a company plan.
How Marketplace subsidies react to income mix changes (in plain English)
The Marketplace uses MAGI (Modified Adjusted Gross Income) to decide whether you qualify for the Premium Tax Credit and how much you get. MAGI is basically your AGI plus a few specific items (like tax-exempt interest or non-taxed Social Security). If your income changes — for example, you estimated contractor income for the year but then accept a W-2 job halfway through — your subsidy can go up or down. (HealthCare.gov)
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Key points:
Tell the Marketplace earlier rather than later. If your estimated income goes up, update your Marketplace application. That lowers the monthly advance credit, helping avoid a big repayment at tax time. (IRS)
If you get a W-2 offer that includes coverage, it may affect subsidy eligibility. Marketplace rules treat an offer of affordable job-based coverage as a factor when calculating eligibility for premium tax credits. (HealthCare.gov)
If you have both incomes, the Marketplace looks at total household MAGI. That means 1099 freelancing income + W-2 wages both count.
Table: At-a-glance comparison (W-2 vs 1099 vs Hybrid)
Feature / Situation
W-2 employee
1099 self-employed
Hybrid (both)
Typical coverage source
Employer-sponsored group plan
Marketplace / private plan / spouse’s plan
Employer plan (if offered) or Marketplace; may combine
Premium tax credit eligibility
Usually no if offered affordable employer coverage
Possible, based on MAGI
Determined by total household MAGI; job offer can affect eligibility. (HealthCare.gov)
Tax treatment of premiums
Employer share excluded from income; employee share often pre-tax payroll deduction
May be deductible via self-employed health insurance deduction (see IRS guidance). (IRS)
Depends: W-2 pre-tax decreases MAGI; self-employed deduction may also apply if eligible.
COBRA available?
Yes (if employer has ≥20 employees; rules apply). (DOL)
No
COBRA possible from the W-2 employer if you lose that job.
HSA access
May be available through employer (with employer contributions). (IRS)
Available if you buy a qualifying HDHP on your own
Depends on whether enrolled in HDHP and whether plan is employer or individual
Risk of subsidy repayment
Lower if income is stable and reported
Higher if income fluctuates and not updated on Marketplace
Higher unless you actively adjust Marketplace estimate
Concrete tax and subsidy pitfalls — and how to avoid them
Pitfall: You take Marketplace advance payments (subsidies) based on a contractor-only estimate, then you land a W-2 job — and your subsidy was too large. What happens: When you file, you may need to repay some or all of the excess advance premium tax credit. The reconciliation can be costly. (IRS) How to avoid it:
Update your Marketplace income estimate as soon as you accept a W-2 job.
If you’re earning 1099 income while interviewing, be conservative on Marketplace estimates.
Consider switching to employer coverage if it’s affordable (see the employer offer rules). (HealthCare.gov)
Pitfall: You assume your self-employed premiums are deductible no matter what. What happens: The self-employed health insurance deduction is powerful but has eligibility limits (you cannot claim it for months you’re eligible to participate in employer-sponsored coverage, even if you decline it). Use the IRS rules to confirm. (IRS) How to avoid it:
Check IRS guidance early (Form 7206 guidance) and/or consult your tax preparer before counting on the deduction. (IRS)
Pitfall: You ignore pre-tax payroll benefits when estimating MAGI. What happens: Pre-tax wages are already reduced on your W-2 Box 1; they don’t inflate MAGI, but failing to understand the difference can lead to wrong assumptions about subsidy eligibility. (Beyond the Basics) How to avoid it: Understand what counts toward MAGI (start with AGI) and what is already excluded (pre-tax payroll deductions). Use the Marketplace tools or tax software to model. (HealthCare.gov)
Practical checklist: What to do when you go from 1099 → W-2 (or run both)
Pause and gather docs
Year-to-date 1099 income, recent invoices, and projected earnings for the rest of the year.
Recent pay stubs or W-2 job offer details (including whether employer coverage is offered, cost to you, and start date).
Update Marketplace immediately if you have a Marketplace plan
Report the new W-2 offer or the change in income so your advanced premium tax credit can be adjusted. This reduces the chance of repayment at tax time. (IRS)
Run the numbers: compare total monthly cost
Employee cost for employer plan (premium + out-of-pocket) vs your Marketplace plan cost after updated subsidy.
Don’t forget to include employer HSA contributions or FSAs in the calculus (they add value). (IRS)
Check the self-employed health insurance deduction rules
If you continue 1099 work, check whether you qualify for the above-the-line deduction and how months of employer coverage eligibility affect it. (IRS)
Plan taxes for the year
If you have 1099 income and take on W-2 wages, you may need to adjust estimated taxes or withholding to cover the new tax picture.
Consider tax-deferred retirement contributions (Traditional IRA, SEP IRA, Solo 401(k)) that could lower AGI / MAGI — which can affect Marketplace subsidy eligibility. (See the retirement strategies note below.) (Nerd’s Eye View | Kitces.com)
When you leave the job
If separation is expected, know your COBRA rights and compare COBRA vs Marketplace vs spouse’s plan. COBRA can be convenient but expensive. (DOL)
Smart moves to lower your MAGI (and potentially increase Marketplace subsidies)
If you’re juggling 1099 income and W-2 wages and want to reduce MAGI legally (so you qualify for greater Marketplace assistance), consider:
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Tax-deferred retirement contributions: Contributing to deductible accounts like a SEP IRA, Solo 401(k), or deductible Traditional IRA (if eligible) can reduce AGI and therefore MAGI — but rules and limits apply. Talk to a CPA. (Nerd’s Eye View | Kitces.com)
HSA contributions (if on a qualifying HDHP): HSA contributions are above-the-line deductions and reduce AGI. If you’re eligible for an HSA, they can be a double win — tax break now and medical dollars later. (IRS)
Legitimate business expenses: If you’re still doing 1099 work, legitimate business deductions (home office, equipment, mileage) reduce net self-employment income and lower AGI. Keep careful records.
Important caveat: Some pretax deductions (like employer payroll retirement deferrals or employer HSA contributions) are already excluded from Box 1 wages, so the Marketplace’s MAGI calculation will typically reflect the pre-tax reality. Always confirm with a tax professional for your situation. (Beyond the Basics)
Example scenarios (short, realistic case studies)
Scenario A — Full switch mid-year
January–June: You were a 1099 contractor earning $3,000/month and enrolled through the Marketplace with a subsidy based on that projected income.
July: You accept a W-2 job that pays $4,000/month and offers subsidized employer coverage for $100/month employee premium.
What to do: Update Marketplace income ASAP and evaluate whether the employer plan is affordable compared with your updated Marketplace premium. If employer coverage is affordable, Marketplace subsidies may be reduced or eliminated. That update reduces risk of repaying credits at tax time. (IRS)
Scenario B — Keep freelancing but add small W-2 gig
You earn $36k from 1099 and then pick up a PT W-2 job adding $8k. Combined MAGI may push you above a subsidy threshold.
What to do: Estimate combined income conservatively on the Marketplace; consider increasing retirement/Sep contributions to lower MAGI; consult tax pro if you want to optimize subsidies while saving for retirement. (Nerd’s Eye View | Kitces.com)
COBRA vs Marketplace: making the right call if you lose a W-2 job
When you leave a W-2 job, you’ll often be offered COBRA continuation. COBRA allows you to keep the employer’s same plan for a limited time, but you usually pay the full premium plus a small admin fee. That can be much more expensive than Marketplace plans — but COBRA keeps provider networks and coverage continuity. Evaluate:
Cost: COBRA = full premium + up to 2% admin fee; Marketplace may be cheaper if you qualify for subsidies. (DOL)
Continuity: COBRA keeps the exact same plan (useful for ongoing treatments).
Timing: You have a special enrollment window when you lose job-based coverage to enroll in Marketplace coverage. Don’t miss deadlines. (HealthCare.gov)
The self-employed health insurance deduction: what to know (short version)
Who can use it? Many self-employed taxpayers who pay health insurance premiums for themselves, spouse, and dependents can take this above-the-line deduction — but there are rules. If you’re eligible for an employer plan (even if you decline), your ability to claim may be limited for those months. Consult the IRS guidance for details. (IRS)
Where it shows up: The deduction is taken on Schedule 1 (Form 1040) and reduces your AGI, which then affects MAGI and potentially Marketplace subsidy calculations. (IRS)
Final practical tips — the things people miss
Be conservative on Marketplace income estimates if you have uncertain 1099 income — you can always reconcile and get a refund, but underestimating by a lot can create repayment obligations. (IRS)
Document everything. Keep invoices, 1099s, W-2s, and records of Marketplace updates.
Use IRS and Marketplace tools. Healthcare.gov has a MAGI glossary and income guidance that’s surprisingly readable. (HealthCare.gov)
Talk to a tax pro before the year ends if you’re dealing with high variability — timely SEP or IRA contributions can shift MAGI and subsidy outcomes. (Nerd’s Eye View | Kitces.com)
Resources (two primary, placed where they matter)
Detailed explanation of MAGI and how Healthcare.gov calculates income for Marketplace subsidies: the Healthcare.gov MAGI page. (HealthCare.gov)
IRS guidance on the self-employed health insurance deduction and Form 7206 instructions. (IRS)
(If you want more, I leaned on DOL guidance for COBRA and IRS Publication 969 for HSA rules while researching — I can pull those pages into a short cheat-sheet for you.)
Summary — the short, practical action plan
Gather your numbers (year-to-date 1099, W-2 offer, projected earnings).
If you’re on Marketplace, update your income estimate immediately after a job change. (IRS)
Compare total costs: employer plan after payroll deductions vs Marketplace after subsidies. Include HSA/FSAs and employer contributions. (IRS)
Consider retirement or HSA contributions to responsibly lower MAGI (with tax advice). (Nerd’s Eye View | Kitces.com)
Keep records and consult a tax professional if you expect big income swings.
If you want, I can:
Produce a one-page printable cheat-sheet with the checklist and the comparison table formatted for quick reference; or
Run two sample calculations using your actual (or hypothetical) numbers to show whether employer coverage or Marketplace coverage will cost you less — including the likely subsidy reconciliation at tax time.
Which would be more helpful: the printable cheat-sheet or a personalized numbers example?
From 1099 to W-2: Health Insurance Tips When Your Income Mix Changes
Meta description: Practical, tax-smart health insurance tips for people switching between 1099 contracting and W-2 employment — how subsidies, deductions, HSAs, and COBRA change and what to do next. URL slug / description:/from-1099-to-w2-health-insurance-tips
Shifting from 1099 contracting to W-2 employment (or running both at the same time) feels a lot like changing lanes on a busy highway: you want to avoid surprises, signal your intentions early, and check the mirrors. For many people, the insurance lane is the scariest: eligibility for marketplace subsidies, whether you can keep a contractor plan, how payroll pretax benefits affect your taxes, and whether you’ll owe money at tax time are all questions that suddenly matter.
This post walks you through the practical, tax-aware steps to take when your income mix changes. It’s written for real people — not actuaries — and includes clear comparisons, a helpful table, and a step-by-step checklist you can act on today. I researched authoritative guidance from the IRS, Healthcare.gov, the Department of Labor and established tax/financial advisors to make sure the tips are accurate and up to date. Two key resources I leaned on are linked where they matter most:
For how the Marketplace calculates household income (MAGI) and subsidy eligibility, see Modified Adjusted Gross Income (MAGI) on Healthcare.gov. (HealthCare.gov)
For rules and forms related to the self-employed health insurance deduction, see the IRS instructions for Form 7206 / self-employed health insurance deduction. (IRS)
Quick overview: what changes when you move from 1099 to W-2
Source of coverage: As a W-2 employee you’ll usually be eligible for employer-sponsored group coverage (often with employer premium contributions). As a 1099 contractor you buy individual coverage (Marketplace, private plan), or join a spouse’s plan. If you have both incomes in the same year you’ll be evaluated based on your combined household Modified Adjusted Gross Income (MAGI) for subsidy purposes. (KFF)
Subsidies & reconciliation: Marketplace premium tax credits (subsidies) are based on your MAGI estimate; if your mix of W-2 and 1099 income changes during the year, the amount of subsidy you’re eligible for can change and must be reconciled when you file taxes. That can increase or decrease your final tax bill. (IRS)
Tax treatment of premiums: Self-employed individuals can often deduct health premiums above the line (subject to rules), while W-2 employees usually receive employer contributions and pre-tax payroll deduction options that lower taxable wages. The tax mechanics are different and affect MAGI in different ways. (IRS)
W-2 vs 1099: the practical differences that matter for health insurance
W-2 (employee)
Employer may offer group coverage and pay part of the premium.
Employee premium portion is often deducted pre-tax (Section 125/cafeteria plan), lowering taxable wages and MAGI.
Access to employer HSAs/FSAs and possible employer HSA contributions.
If you leave the job, you may be eligible for COBRA continuation (usually expensive because you pay full premium + admin fee). (HealthCare.gov)
1099 (self-employed / independent contractor)
You buy your own plan (Marketplace, private, association) and may qualify for premium tax credits — but those credits are based on MAGI (remember: includes all income). (HealthCare.gov)
You may be able to take the self-employed health insurance deduction (an “above-the-line” deduction) which reduces your adjusted gross income, subject to eligibility rules. (IRS)
You don’t get payroll benefits like an employer HSA contribution unless you join a company plan.
How Marketplace subsidies react to income mix changes (in plain English)
The Marketplace uses MAGI (Modified Adjusted Gross Income) to decide whether you qualify for the Premium Tax Credit and how much you get. MAGI is basically your AGI plus a few specific items (like tax-exempt interest or non-taxed Social Security). If your income changes — for example, you estimated contractor income for the year but then accept a W-2 job halfway through — your subsidy can go up or down. (HealthCare.gov)
Key points:
Tell the Marketplace earlier rather than later. If your estimated income goes up, update your Marketplace application. That lowers the monthly advance credit, helping avoid a big repayment at tax time. (IRS)
If you get a W-2 offer that includes coverage, it may affect subsidy eligibility. Marketplace rules treat an offer of affordable job-based coverage as a factor when calculating eligibility for premium tax credits. (HealthCare.gov)
If you have both incomes, the Marketplace looks at total household MAGI. That means 1099 freelancing income + W-2 wages both count.
Table: At-a-glance comparison (W-2 vs 1099 vs Hybrid)
Feature / Situation
W-2 employee
1099 self-employed
Hybrid (both)
Typical coverage source
Employer-sponsored group plan
Marketplace / private plan / spouse’s plan
Employer plan (if offered) or Marketplace; may combine
Premium tax credit eligibility
Usually no if offered affordable employer coverage
Possible, based on MAGI
Determined by total household MAGI; job offer can affect eligibility. (HealthCare.gov)
Tax treatment of premiums
Employer share excluded from income; employee share often pre-tax payroll deduction
May be deductible via self-employed health insurance deduction (see IRS guidance). (IRS)
Depends: W-2 pre-tax decreases MAGI; self-employed deduction may also apply if eligible.
COBRA available?
Yes (if employer has ≥20 employees; rules apply). (DOL)
No
COBRA possible from the W-2 employer if you lose that job.
HSA access
May be available through employer (with employer contributions). (IRS)
Available if you buy a qualifying HDHP on your own
Depends on whether enrolled in HDHP and whether plan is employer or individual
Risk of subsidy repayment
Lower if income is stable and reported
Higher if income fluctuates and not updated on Marketplace
Higher unless you actively adjust Marketplace estimate
Concrete tax and subsidy pitfalls — and how to avoid them
Pitfall: You take Marketplace advance payments (subsidies) based on a contractor-only estimate, then you land a W-2 job — and your subsidy was too large. What happens: When you file, you may need to repay some or all of the excess advance premium tax credit. The reconciliation can be costly. (IRS) How to avoid it:
Update your Marketplace income estimate as soon as you accept a W-2 job.
If you’re earning 1099 income while interviewing, be conservative on Marketplace estimates.
Consider switching to employer coverage if it’s affordable (see the employer offer rules). (HealthCare.gov)
Pitfall: You assume your self-employed premiums are deductible no matter what. What happens: The self-employed health insurance deduction is powerful but has eligibility limits (you cannot claim it for months you’re eligible to participate in employer-sponsored coverage, even if you decline it). Use the IRS rules to confirm. (IRS) How to avoid it:
Check IRS guidance early (Form 7206 guidance) and/or consult your tax preparer before counting on the deduction. (IRS)
Pitfall: You ignore pre-tax payroll benefits when estimating MAGI. What happens: Pre-tax wages are already reduced on your W-2 Box 1; they don’t inflate MAGI, but failing to understand the difference can lead to wrong assumptions about subsidy eligibility. (Beyond the Basics) How to avoid it: Understand what counts toward MAGI (start with AGI) and what is already excluded (pre-tax payroll deductions). Use the Marketplace tools or tax software to model. (HealthCare.gov)
Practical checklist: What to do when you go from 1099 → W-2 (or run both)
Pause and gather docs
Year-to-date 1099 income, recent invoices, and projected earnings for the rest of the year.
Recent pay stubs or W-2 job offer details (including whether employer coverage is offered, cost to you, and start date).
Update Marketplace immediately if you have a Marketplace plan
Report the new W-2 offer or the change in income so your advanced premium tax credit can be adjusted. This reduces the chance of repayment at tax time. (IRS)
Run the numbers: compare total monthly cost
Employee cost for employer plan (premium + out-of-pocket) vs your Marketplace plan cost after updated subsidy.
Don’t forget to include employer HSA contributions or FSAs in the calculus (they add value). (IRS)
Check the self-employed health insurance deduction rules
If you continue 1099 work, check whether you qualify for the above-the-line deduction and how months of employer coverage eligibility affect it. (IRS)
Plan taxes for the year
If you have 1099 income and take on W-2 wages, you may need to adjust estimated taxes or withholding to cover the new tax picture.
Consider tax-deferred retirement contributions (Traditional IRA, SEP IRA, Solo 401(k)) that could lower AGI / MAGI — which can affect Marketplace subsidy eligibility. (See the retirement strategies note below.) (Nerd’s Eye View | Kitces.com)
When you leave the job
If separation is expected, know your COBRA rights and compare COBRA vs Marketplace vs spouse’s plan. COBRA can be convenient but expensive. (DOL)
Smart moves to lower your MAGI (and potentially increase Marketplace subsidies)
If you’re juggling 1099 income and W-2 wages and want to reduce MAGI legally (so you qualify for greater Marketplace assistance), consider:
Tax-deferred retirement contributions: Contributing to deductible accounts like a SEP IRA, Solo 401(k), or deductible Traditional IRA (if eligible) can reduce AGI and therefore MAGI — but rules and limits apply. Talk to a CPA. (Nerd’s Eye View | Kitces.com)
HSA contributions (if on a qualifying HDHP): HSA contributions are above-the-line deductions and reduce AGI. If you’re eligible for an HSA, they can be a double win — tax break now and medical dollars later. (IRS)
Legitimate business expenses: If you’re still doing 1099 work, legitimate business deductions (home office, equipment, mileage) reduce net self-employment income and lower AGI. Keep careful records.
Important caveat: Some pretax deductions (like employer payroll retirement deferrals or employer HSA contributions) are already excluded from Box 1 wages, so the Marketplace’s MAGI calculation will typically reflect the pre-tax reality. Always confirm with a tax professional for your situation. (Beyond the Basics)
Example scenarios (short, realistic case studies)
Scenario A — Full switch mid-year
January–June: You were a 1099 contractor earning $3,000/month and enrolled through the Marketplace with a subsidy based on that projected income.
July: You accept a W-2 job that pays $4,000/month and offers subsidized employer coverage for $100/month employee premium.
What to do: Update Marketplace income ASAP and evaluate whether the employer plan is affordable compared with your updated Marketplace premium. If employer coverage is affordable, Marketplace subsidies may be reduced or eliminated. That update reduces risk of repaying credits at tax time. (IRS)
Scenario B — Keep freelancing but add small W-2 gig
You earn $36k from 1099 and then pick up a PT W-2 job adding $8k. Combined MAGI may push you above a subsidy threshold.
What to do: Estimate combined income conservatively on the Marketplace; consider increasing retirement/Sep contributions to lower MAGI; consult tax pro if you want to optimize subsidies while saving for retirement. (Nerd’s Eye View | Kitces.com)
COBRA vs Marketplace: making the right call if you lose a W-2 job
When you leave a W-2 job, you’ll often be offered COBRA continuation. COBRA allows you to keep the employer’s same plan for a limited time, but you usually pay the full premium plus a small admin fee. That can be much more expensive than Marketplace plans — but COBRA keeps provider networks and coverage continuity. Evaluate:
Cost: COBRA = full premium + up to 2% admin fee; Marketplace may be cheaper if you qualify for subsidies. (DOL)
Continuity: COBRA keeps the exact same plan (useful for ongoing treatments).
Timing: You have a special enrollment window when you lose job-based coverage to enroll in Marketplace coverage. Don’t miss deadlines. (HealthCare.gov)
The self-employed health insurance deduction: what to know (short version)
Who can use it? Many self-employed taxpayers who pay health insurance premiums for themselves, spouse, and dependents can take this above-the-line deduction — but there are rules. If you’re eligible for an employer plan (even if you decline), your ability to claim may be limited for those months. Consult the IRS guidance for details. (IRS)
Where it shows up: The deduction is taken on Schedule 1 (Form 1040) and reduces your AGI, which then affects MAGI and potentially Marketplace subsidy calculations. (IRS)
Final practical tips — the things people miss
Be conservative on Marketplace income estimates if you have uncertain 1099 income — you can always reconcile and get a refund, but underestimating by a lot can create repayment obligations. (IRS)
Document everything. Keep invoices, 1099s, W-2s, and records of Marketplace updates.
Use IRS and Marketplace tools. Healthcare.gov has a MAGI glossary and income guidance that’s surprisingly readable. (HealthCare.gov)
Talk to a tax pro before the year ends if you’re dealing with high variability — timely SEP or IRA contributions can shift MAGI and subsidy outcomes. (Nerd’s Eye View | Kitces.com)
Resources (two primary, placed where they matter)
Detailed explanation of MAGI and how Healthcare.gov calculates income for Marketplace subsidies: the Healthcare.gov MAGI page. (HealthCare.gov)
IRS guidance on the self-employed health insurance deduction and Form 7206 instructions. (IRS)
(If you want more, I leaned on DOL guidance for COBRA and IRS Publication 969 for HSA rules while researching — I can pull those pages into a short cheat-sheet for you.)
Summary — the short, practical action plan
Gather your numbers (year-to-date 1099, W-2 offer, projected earnings).
If you’re on Marketplace, update your income estimate immediately after a job change. (IRS)
Compare total costs: employer plan after payroll deductions vs Marketplace after subsidies. Include HSA/FSAs and employer contributions. (IRS)
Consider retirement or HSA contributions to responsibly lower MAGI (with tax advice). (Nerd’s Eye View | Kitces.com)
Keep records and consult a tax professional if you expect big income swings.
If you want, I can:
Produce a one-page printable cheat-sheet with the checklist and the comparison table formatted for quick reference; or
Run two sample calculations using your actual (or hypothetical) numbers to show whether employer coverage or Marketplace coverage will cost you less — including the likely subsidy reconciliation at tax time.
Which would be more helpful: the printable cheat-sheet or a personalized numbers example?
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