What Are Low Income Criteria?
Low-income criteria help government or private organizations determine the level of assistance they should provide to an individual or family. While low-income criteria can be based solely on income amounts, some organizations may also look at personal assets or other information to determine whether the individual or family qualifies as having a low income. Criteria for a low income may change over time depending on the economy or census results.
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Calculation
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The Department of Health and Human Services determines the federal poverty level, or FPL, and records it in the Federal Register. These numbers are based on poverty thresholds that are determined by census records.
Changes
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The FPL can change on a yearly basis or anytime a census occurs. In addition to the FPL, individual programs determine poverty levels based on their specific calculations. These levels determine whether they will assist a family or individual who applies. The formulas used to calculate these individual low-income levels could change at any time.
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Income
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Many programs determine low income as applying to families or individuals who receive income that is less than twice the amount of the federal poverty threshold. No one who receives more than this amount qualifies as being low income. As of 2011, the poverty level was $22,350 for families with two adults and two children who reside in the 48 contiguous states plus Washington, D.C. A family of four in Hawaii qualifies at $25,710 or less, while Alaska residents that make under $27,940 qualify. Some companies will determine their definition of low income based on additional criteria. You may receive a list of these criteria from the program to which you are applying for assistance.
Programs
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The types of programs that use these calculations are vast. Many federal programs such as the food stamp program or TANF go by the federal poverty level. They may also use additional breakdowns of your state to determine low incomes for the county in which you reside. These amounts will vary from county to county. Other programs, such as utility or housing assistance through a church or other nonprofit program, may choose to use the FPL or use guidelines or criteria determined by the programs themselves.
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