Adults under 65 who collect Social Security, whether early retirement at 62 to 64, disability (SSDI), or a survivor benefit, often assume the money does not matter for Marketplace savings because part or all of it is not taxed. That assumption is wrong. For 2027 coverage, sold on HealthCare.gov from November 1, 2026, the premium tax credit is sized from Modified Adjusted Gross Income (MAGI), and MAGI adds untaxed Social Security back in. Leaving it out understates household income and can lead to a repayment bill at tax time.
This page answers the single most common income question for 2027 ACA coverage: which Social Security dollars count, how the untaxed part is added back, and what the 2027 income range is. A worked example shows how far MAGI can move. For the full list of income types, see what counts as income for ACA subsidies, and for the eligibility basics see who qualifies for an ACA subsidy.
Coverage Breakdown
Direct answer: Social Security counts as income for ACA subsidies (2027)
Yes. Social Security counts as income for ACA subsidies, and HealthCare.gov says to include both taxable and non-taxable Social Security. Retirement, SSDI, and survivor benefits count. SSI does not. For 2027 coverage, MAGI is compared with the 2026 poverty guidelines, so the subsidy range is $15,960 to $63,840 for one person.
How untaxed Social Security is added back into MAGI for 2027 coverage
Modified Adjusted Gross Income starts with adjusted gross income (AGI) from Form 1040 and adds untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest, according to the HealthCare.gov MAGI glossary. The taxable part of your benefit is already inside AGI. The untaxed part is not, so the Marketplace adds it back. The result is that every Social Security dollar counts once, whether or not the IRS taxes it. The statute behind this rule is 26 USC 36B(d)(2)(B)(iii).
How much of a benefit is taxable depends on combined income, which is your AGI plus tax-exempt interest plus half of your Social Security. Under IRS Publication 915, the base amounts are $25,000 for a single filer and $32,000 for a married couple filing jointly in tax year 2027, and up to 50% of benefits are taxable above those levels. Above $34,000 for a single filer ($44,000 for a joint return) in tax year 2027, up to 85% can be taxable. Many people under 65 with modest benefits owe tax on little or none of it, yet all of it still counts for ACA purposes.
Worked example: a 62-year-old shopping for 2027 coverage
Consider a single 62-year-old who expects $20,000 in part-time wages and $18,000 in Social Security during 2027. Half of the benefit is $9,000, so combined income is $29,000. That is $4,000 over the $25,000 base amount, which makes $2,000 of the benefit taxable (50% of the excess). AGI is $22,000 ($20,000 wages plus $2,000 taxable benefit). The untaxed $16,000 of Social Security is added back, so 2027 MAGI is $38,000. The figures are illustrative, not a prediction of any real benefit.
Measured against the 2026 poverty guideline of $15,960 for one person, which applies to 2027 coverage, $38,000 is about 238% of the poverty level, well inside the 2027 range. Had the same person entered only the $22,000 AGI, the Marketplace would see about 138%, a figure that sits at the Medicaid line for an expansion state and understates income by $16,000 for 2027. The wrong number could produce a larger advance credit than the person is owed, and the difference must be repaid in full at tax time.
Which Social Security payments count and which do not (2027 coverage)
Social Security retirement benefits, disability benefits (SSDI), and survivor benefits all count for 2027 coverage. The Marketplace application asks for the amount before deductions, so use the gross benefit shown on your SSA benefit statement rather than the smaller deposit after a Medicare premium or tax withholding is taken out. Supplemental Security Income (SSI) is a separate, needs-based program, and HealthCare.gov tells applicants not to add SSI to their income.
- Counts: Social Security retirement benefits, including early benefits claimed at 62 to 64.
- Counts: Social Security Disability Insurance (SSDI).
- Counts: survivor benefits paid to a widow, widower, or other eligible family member.
- Counts: both the taxable and the untaxed part of each benefit, entered at the gross amount.
- Does not count: Supplemental Security Income (SSI).
The 2027 coverage income range by household size
For 2027 coverage, the premium tax credit applies when household MAGI is between 100% and 400% of the federal poverty level, measured against the 2026 poverty guidelines, as HealthCare.gov explains: income from the previous year's guidelines is used for the next year's savings. The expected contribution for 2027 coverage runs from 2.15% to 10.22% of income under Rev. Proc. 2026-26. Income above 400% of poverty gets no premium tax credit for 2027 coverage.
Why an accurate Social Security estimate matters for 2027 coverage
The Marketplace uses your projected income for the coverage year, so the Social Security you enter is a forecast of 2027 benefits plus any other 2027 income. If the advance credit paid during 2027 turns out to be larger than the credit you qualify for, there is no repayment cap at any income: you repay the full difference on Form 8962, as the IRS premium tax credit Q&A states for tax years after 2025. The 400% line also returned for 2026 coverage and remains for 2027 coverage, since the enhanced credits ended December 31, 2025.
A cost-of-living adjustment can change your 2027 benefit, and a new claim, a switch from early retirement to a different benefit, or a return to work can change it too. Update your HealthCare.gov application when your expected 2027 income changes. Household MAGI includes the tax filer, a spouse on a joint return, and dependents who must file their own return, so a spouse's Social Security counts toward the household total as well.
How to enter Social Security and apply for 2027 coverage
Open enrollment for 2027 coverage on HealthCare.gov runs from November 1, 2026 to January 15, 2027. HealthCare.gov lists December 15, 2026 as the last day to enroll or change plans for coverage starting January 1, 2027, and plans chosen from December 16 through January 15 start February 1, 2027 once the first premium is paid. Confirm the dates on the HealthCare.gov dates page before you apply, because state-based Marketplaces set their own deadlines.
Social Security, Medicare at 65, and ACA-compliant plans before then
Adults under 65 who collect Social Security can still buy an ACA-compliant plan, and a preexisting condition cannot be used to deny coverage or raise the price. Every ACA-compliant plan covers the 10 essential health benefits regardless of income. Once you are eligible for Original Medicare, premium tax credits for Marketplace coverage stop. Medicare Part A and Medicare Part B generally begin at 65, or after 24 months of SSDI benefits for people with a disability, and some people then add Medicare Advantage or Medigap.
Frequently Asked Questions
Does Social Security count as income for ACA subsidies?
Yes. For 2027 coverage, HealthCare.gov says to include both taxable and non-taxable Social Security when you estimate income. Retirement, disability (SSDI), and survivor benefits all count. The taxable part is already in adjusted gross income and the untaxed part is added back to reach MAGI. Only Supplemental Security Income (SSI) is left out.
Does untaxed Social Security count toward ACA income?
Yes. MAGI is adjusted gross income plus non-taxable Social Security benefits, untaxed foreign income, and tax-exempt interest. Even if none of your 2027 benefit is taxed, the full amount still counts toward the premium tax credit calculation, so enter the gross benefit shown on your SSA statement.
Does SSI count as income for Obamacare?
No. HealthCare.gov tells applicants not to add Supplemental Security Income (SSI) to their Marketplace income. SSI is a needs-based program and is different from Social Security retirement, SSDI, or survivor benefits, which do count. If you receive both SSI and regular Social Security, enter only the Social Security part.
Does Social Security disability (SSDI) count as income for the ACA?
Yes. SSDI is treated the same as Social Security retirement benefits for 2027 coverage, both the taxable and untaxed parts. Medicare usually begins after 24 months of SSDI benefits, and once you are eligible for Medicare you can no longer get premium tax credits for Marketplace coverage.
What is the income range for ACA subsidies for 2027 coverage?
For 2027 coverage, the premium tax credit applies at 100% to 400% of the 2026 poverty guidelines: $15,960 to $63,840 for one person and $33,000 to $132,000 for a family of four. Above 400% there is no premium tax credit. For 2026 coverage the one-person range was $15,650 to $62,600.
What happens if I leave Social Security out of my ACA income estimate?
Your MAGI will be too low, so the advance premium tax credit may be larger than the credit you are owed. There is no repayment cap at any income for tax years after 2025, so you repay the full excess on Form 8962 when you file your return. Update HealthCare.gov whenever your expected 2027 income changes.
Does my spouse's Social Security count toward my ACA income?
Yes, if you file jointly. Household MAGI includes the tax filer, a spouse on a joint return, and dependents who must file their own return. A spouse's Social Security, taxable and untaxed, is part of the household total used for the 2027 premium tax credit. A child's benefit counts only if the child must file.
Does Social Security income affect Medicaid eligibility too?
Yes, Social Security generally counts in the MAGI that Medicaid uses for adults in expansion states, where the 2026 limit is 138% of poverty, or $22,025 for one person. Your state agency makes the final call. If your MAGI is below that line, the Marketplace will send you to Medicaid instead of a premium tax credit.
