I am on Medicare (66 years old), and married a woman of 58 this past summer. When she was looking into the cost of her insurance, she was told that my income ($1600 per month in Social Security), counted toward her income, so that there was no benefit to her in terms of receiving a credit on the cost of her insurance. Basically, she’d end up paying full price. Is this correct?
Non-taxable Social Security benefits are counted as income for ObamaCare and affect tax credits. This includes disability payments (SSDI), but does not include Supplemental Security Income (SSI). (Line 20a minus 20b on a Form 1040). ObamaCare counts Modified Adjusted Gross Income and that includes all non-excluded taxable income of all household members (even those on Medicare) after some adjustments.
One exception to the above is Social Security Survivor benefits of tax dependents who don't have to file taxes. If say, survivor benefits are the only income, a tax dependent can elect not to file and thus their AGI won't be counted toward household income.
In simple terms, SSI is not included in taxable income, but SSDI is. However, this only counts for those who are required to file taxes (like in our Survivors benefits example above where income was excluded for a dependent because they were not required to file).