2016 Poverty Level for a Family of 4
I was fortunate to grow up with a relatively privileged upbringing in the 1980s.
We were what I still consider solidly middle course. My parents owned a unmarried-family unit home in the suburbs on Long Island, my dad had a stable white-collar job, my mom as well worked part-time while we weren't in school, we never worried about food or our heating bill, and every few years nosotros took a month-long trip back to Taiwan.
We didn't enjoy a lavish lifestyle, by any means. We turned down the heat at nighttime, went to sleep with fans blowing on our faces rather than air conditioning, and we went to public schoolhouse like everyone else. Merely we ate regular meals together and while it would've been nice to get a few more toys, we had a good life.
Not everyone has that.
There'due south a huge wealth gap in America and wealth inequality is growing.
One of the ways nosotros, as a gild can aid, is by helping lift the poorest amongst u.s.a.. Where you cease up is based quite a bit on where you start. I'chiliad financially independent in office because of what my parents were able to accomplish. I didn't have to get a job right subsequently school to help pay the bills, I could study, get to college, and graduate to a better paying job.
This why so many regime programs, subsidies, and tax rules are based on the idea of poverty.
What constitutes poverty in America?
Table of Contents
- Federal Poverty Level Guidelines Nautical chart (2022)
- 100%/150%/200% Poverty Level
- Programs based on Poverty Levels
- Taxes based on Poverty Levels
Federal Poverty Level Guidelines Chart (2022)
Every year, the Department of Health and Man Services issues new poverty guidelines under the authorization of 42 U.S.C. 9902(2). It has to be adjusted each year because of inflation.
The poverty level is based on where you live equally well as how many people are in your household. It's also sometimes called a poverty line, meaning you are either above or beneath it based on your income.
| # People in Household | Lower 48 & DC | Alaska | Hawai'i |
|---|---|---|---|
| One | $xiii,590 | $xvi,990 | $15,630 |
| Ii | $18,310 | $22,890 | $21,060 |
| Three | $23,030 | $28,790 | $26,490 |
| Four | $27,750 | $34,690 | $31,920 |
| Five | $32,470 | $40,590 | $37,350 |
| Six | $37,190 | $46,490 | $42,780 |
| 7 | $41,910 | $52,390 | $48,210 |
| 8 | $46,630 | $58,290 | $53,640 |
| Each Boosted | +$4,720 | +$5,900 | +$v,430 |
If y'all live in the lower 48-states and have five people in your family, you are considered under the line if you earn less than $32,470. You lot are over the line if you earn more than that. You can run across that the level changes for Alaska and Hawai'i.
If you have more than eight family unit members, you merely add the number in that row by the backlog number of people and add it to the figure in the 8 box. So if you were in Hawaii and had ix family unit members, the poverty level is $59,070 ($53,640+$5,430).
This figure is always interesting when you compare it with boilerplate net worth, which tends to be much lower than yous expect.
100%/150%/200% Poverty Level
Some programs are based on the poverty level, others are based on a per centum above or beneath the poverty level. Some accept sliding scales where the do good is reduced based on the percentages. There are quite a few programs that utilize this per centum like Head Beginning, the Supplemental Nutrition Help Program (SNAP), Children's Health Insurance Program (CHIP), and the Depression-Income Home Free energy Assist Program.
Calculating the percentages is simple – it's based on the level for your family.
If y'all live in the lower 48-states and have five people in your family unit, the line is at $32,470. 150% of that is $32,468.fifty.
It's as elementary equally that.
Programs based on Poverty Levels
One prime example of a program based on poverty levels is the Supplemental Diet Assistance Program (SNAP).
With SNAP, eligibility is based on the family unit'south gross monthly income. A family's gross monthly income must be at or below 130% of the poverty line. Internet income, which is the household's income minus deductions, must be at or below the poverty line (100%).
At that place is likewise an asset dominion but that's not related to the poverty level.
This is simply one of several programs tied to the poverty level.
Taxes based on Poverty Levels
One of the biggest, and most publicized, use of the poverty level in taxes is the Premium Taxation Credit. It is a tax interruption for families who go health insurance nether the Affordable Intendance Human action. If your household income is betwixt 100% and 400% of the poverty level, y'all tin qualify for this credit.
In Maryland, there is a Poverty Level Credit that is based on the poverty level:
If your earned income and federal adapted gross income plus additions are below the poverty level income for the number of exemptions on your federal tax return, yous may be eligible for the poverty level credit. You are non eligible for this credit if y'all checked filing status 6 (dependent taxpayer) on your Maryland income tax return.
Generally, if your Maryland state revenue enhancement exceeds fifty% of your federal earned income credit and your earned income and federal adjusted gross income are below the poverty income guidelines from the worksheet, you lot may claim a credit of five% of your earned income. This is non a refundable credit.
Mahatma Gandhi once said, "A nation's greatness is measured by how it treats its weakest members."
I promise we measure up.
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