Are Temporary Assistance for Needy Families (TANF) payments included on Marketplace applications?

• A. Yes
• B. No
• C. Yes, if part of household income
• D. Only if reported on tax return

Answer: (B)

The main idea is how income is counted to determine eligibility for Marketplace subsidies. The calculation uses MAGI, which includes earned income and many unearned incomes reported on your tax return, but excludes certain kinds of public assistance. TANF payments are not counted in MAGI, so they don’t affect your Marketplace eligibility for premium tax credits or cost-sharing reductions.

TANF is a form of government assistance that’s designed to support basic needs without being treated as taxable income for MAGI purposes. Including it would misstate your overall MAGI, so the system excludes it. When you complete the Marketplace application, you report your actual income sources that MAGI counts (like wages, unemployment, interest, etc.), but TANF payments aren’t added to that total.

That’s why the correct choice is that TANF payments are not included on Marketplace applications.