When applying to purchase health insurance on the federal marketplace, a consumer must report which type of income?

The correct answer is that consumers must report child support received when applying to purchase health insurance on the federal marketplace. This is because child support is considered a form of income that can affect eligibility for premium tax credits and cost-sharing reductions under the Affordable Care Act (ACA).

Income calculations for health insurance subsidies are important because they determine the level of financial assistance a consumer will receive when purchasing coverage. Child support is included in these calculations as it directly contributes to the financial resources of the household, influencing overall income levels.

Other types of income listed, such as alimony paid out by the consumer and gifts, do not count as income for the purposes of federal marketplace applications. Alimony paid is an expense rather than income, and gifts are not considered a reliable source of income for the purposes of health insurance affordability assessments. Capital gains are a specific type of income that may have different reporting requirements but are not generally included in the basic income calculation for marketplace applications unless they form part of the household’s overall financial situation.