Federal Poverty Level (FPL) is the minimum income that a family needs to pay for food, clothing, transportation, shelter and other necessities.  This level is determined by the U.S. Department of Health and Human Services.  FPL varies according to family size and is adjusted annually for inflation.

Obamacare uses your “modified gross adjusted income” (or MAGI) to determine if you are eligible for tax credits and cost-sharing discounts. Modified adjusted gross income is generally your household’s adjusted gross income (from your tax return) plus any tax-exempt Social Security, interest, and foreign income you have.  If your salary is higher or lower than the figures in the following chart, do not assume that you will not qualify for tax credits or other insurance discounts.

The Marketplace website has an online calculator to determine your MAGI. It will automatically compare your MAGI to the federal poverty levels so you don’t have to do the math.  If you are eligible for cost reductions, the Marketplace will show those reductions as you shop for insurance.

In the meantime, you can use the following chart and an estimate of your income to predict whether or not you’ll be eligible for tax credits or cost-sharing discounts. Remember, households between 100 and 400 percent of the federal poverty level will get tax credits.  Households between 100 and 250 percent will also receive cost-sharing discounts.

2013 Federal Poverty Levels

 Household Size

 100%

 133%

 150%

200%

 300%

400%

 1

$11,490

$15,282

$17,235

$22,980

$34,470

$45,960

 2

15,510

 20,628

23,265

  31,020

46,530

62,040

 3

19,530

 25,975

29,295

  39,060

58,590

78,120

 4

23,550

 31,322

35,325

  47,100

70,650

94,200

 5

27,570

 36,668

41,355

  55,140

82,710

110,280

 6

31,590

 42,015

47,385

  63,180

94,770

126,360

 7

35,610

 47,361

53,415

  71,220

106,830

142,440

 8

39,630

 52,708

59,445

  79,260

118,890

158,520

 For each additional person, add

$4,020

 $5,347

$6,030

  $8,040

$12,060

$16,080