How is a dependent defined for MAGI purposes in the marketplace?

• A. A dependent generally includes a child or other family member claimed on your tax return who lives with you, affecting household size and subsidy eligibility.
• B. A dependent is any relative regardless of tax return status.
• C. A dependent must live with you but is not counted for MAGI.
• D. A dependent is only a factor for Medicaid, not subsidies.

Answer: (A)

For MAGI in the marketplace, a dependent is someone you can claim on your federal tax return who lives with you. This matters because such dependents are included in your household size, and the household size is used to determine your eligibility for premium tax credits and the amount of those subsidies. In other words, counting dependents you claim and who live with you can change both whether you qualify and how large the subsidy might be. If a relative isn’t claimed on your tax return or doesn’t live with you, they typically aren’t counted in MAGI household size.