The “Income Change” Script: Avoid Tax Surprises
This is one of the most important ACA conversations you can have with a client.
Not because it sells a plan.
Because it prevents a tax surprise.
Clients forget to report income changes.
Then tax time comes.
And they get a bill.
That bill destroys trust.
This post gives you a simple way to ask about money without being intrusive, and a script to update the Marketplace application fast.
The Risk: Why income changes matter for subsidies
Most clients don’t realize how their discount works.
They think:
- “I got approved once.”
- “So my discount is locked in.”
It isn’t.
Marketplace savings are based on what the client expects to make for the year.
If the client’s income changes and the application doesn’t get updated, the client can end up with:
- too much discount during the year (and a repayment at tax time), or
- too little discount (and they overpay every month)
Either way, they lose.
Agent framing line: “This isn’t about the plan. It’s about protecting your tax credit.”
That’s the partner mindset.
The Question: How to ask “Has your income changed?” effectively
The worst way to ask is:
- “How much do you make?”
- “What’s your income?”
- “I need your paycheck info.”
That feels invasive.
Instead, make it about accuracy and protection.
The best opener (use this)
“Quick check-in so you don’t get a tax surprise later: has your household income changed since we last updated your application?”
Then give them examples so they can answer easily: “Examples are: a raise, a new job, fewer hours, unemployment, a second job, or self-employment changes.”
Why it works
- It explains the “why” (tax surprise prevention)
- It lowers defensiveness
- It triggers memory (“Oh yeah, I did start a new job…”)
If they say “I’m not sure”
Use this: “No problem. Is it roughly the same, up a little, or down a little?”
Then follow with: “If it’s meaningfully different, we should update it so your savings stay accurate.”
The Script: A simple reporting script to update the Marketplace application
Use this when you’re ready to take action.
Script #1: Calm + professional
“To keep your savings accurate, we should update your Marketplace application with your best estimate for total household income for the year. It doesn’t have to be perfect—just realistic. If it changes again later, we update it again.”
Then ask the two data points you need:
- “What’s your best estimate for 2026 household income?”
- “And who is in the household for taxes this year?”
Script #2: Partner positioning (stronger trust)
“My job isn’t just to get you enrolled. It’s to protect your discount and help you avoid a tax-time bill. That’s why we check income changes.”
Then: “Do you want me to update your application today so you’re protected?”
Script #3: If the client is resistant
Client: “I don’t want to deal with that.”
You say: “Totally understand. I’m only bringing it up because the Marketplace uses the income estimate to calculate your discount. If the estimate is off, it can create a surprise later. I’d rather prevent that.”
Then ask: “Has your income changed by more than a little since we last filed it?”
What counts as an “income change” (simple list)
Clients think “income change” means only one thing.
Help them with a checklist.
Changes include:
- New job or job loss
- Raise or pay cut
- Overtime added or removed
- Self-employment income changes
- Unemployment benefits start/stop
- Social Security amount changes
- A spouse starts/stops working
- Side work (Uber, Etsy, contract work) increases
If any of those happened, you should at least review the estimate.
How to explain the benefit (without sounding like an accountant)
Use this sentence: “Updating your income keeps your monthly premium accurate and protects you from paying money back later.”
That’s the value.
Practical workflow: “Income Update” as a client service touchpoint
This is how you become a long-term partner:
- Do a quick income check at renewal time
- Encourage clients to text you if income changes
- Offer a 2-minute update call mid-year for self-employed clients
Partner line:
“If anything changes during the year, just text me ‘income change’ and I’ll tell you what to do next.”
This turns you into a reliable point of contact, not a transactional salesperson.
Common mistakes agents make (and how to avoid them)
Mistake #1: Asking in a way that feels intrusive
Fix: use the “tax surprise” frame and example list.
Mistake #2: Waiting until the client gets a bill
Fix: treat this like a normal check-in.
Mistake #3: Acting like income is a “one-time” entry
Fix: explain that it’s a living estimate.
Add this script to your renewal workflow
Do one action today:
- Save the “Quick check-in so you don’t get a tax surprise…” line as a canned message.
- Use it on every ACA renewal call and every plan review.
It takes 20 seconds.
It prevents months of regret.
