The platforms send you a 1099 at year's end with a big figure, and many people see that number and assume they earn too much to qualify. That number is not your income. Here's why, and why mileage can be the difference between paying a full premium or almost nothing.
| Your situation | What it means |
|---|---|
| What the platform sends you | A 1099 with the gross, not your profit |
| What counts for the subsidy | What's left after deducting expenses |
| The biggest expense | The miles you drive |
| Qualifies for the Marketplace | Yes |
| Cost of my help | $0 |
The number on the 1099 is not what you earn
This is the first thing to understand: the platform reports everything that went through your account, not what you kept.
Out of that comes gas, maintenance, wear on the car, your phone and insurance. The income the Marketplace uses to calculate your help is what's left after that.
That's why so many people come to me convinced they don't qualify: they saw $52,000 on the form and never even tried.
Mileage is your biggest deduction
If you drive for a living, mileage is by far your biggest expense — and the one that lowers your countable income the most.
In practical terms: keeping a good mileage log can increase the subsidy you qualify for, because it reduces the income it's calculated on.
Log your work miles from the first day of the year. There are apps that do it for you. How to apply it on your return is for your tax preparer — what I do is make sure the income we report to the Marketplace is the right one.
The risk in this trade is on the road
You spend the day inside a vehicle. The risk is different from other trades: it isn't wear and tear, it's a crash that can leave you weeks without driving.
And there's a detail many people find out too late: your personal auto insurance doesn't always cover you while you're working on the platform. It's worth checking with whoever handles your auto policy.
On the health side, accident insurance fits especially well here: it pays cash for emergencies and fractures, which is exactly what a crash leaves behind.
No car, no income. A crash takes both at once: your health and your way of making a living. Better to look at what would happen before it does.
A question for your tax preparer
Self-employed people can deduct what they pay in health premiums. It's done with Form 7206 and carries over to Schedule 1 of the return. There's one detail that often gets missed: the deduction is reduced by the tax credit you already received from the Marketplace, so you don't deduct all of it.
I don't prepare taxes and I'm not going to tell you how to file. But I will tell you what to ask, because many people don't even know this exists. And the part that is my job — making sure the income we report to the Marketplace is right — that one is on me.
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General information, not legal, tax or immigration advice. For deductions and filing, consult your tax preparer. Omar Mendoza, licensed agent — NPN 21726482.