How to Calculate Poverty Threshold
- 1). Go to www.census.gov/hhes/www/poverty/threshld.html. The U.S. Census Bureau annually updates poverty thresholds so you can determine your household's status.
- 2). Click a link for the previous year, since the current year's data will not yet be on the site. For instance, if the current year is 2010, click on 2009.
- 3). Check the chart for your household size. Household sizes listed range from one person to eight or more. If you live alone and earn $18,000 annually, for instance, you are not in poverty, according to the 2009 poverty threshold. That year's threshold requires a person younger than 65 to earn less than $11,161 before she can claim poverty.
- 4). Calculate the difference in dollars between your household's income and the current poverty threshold. Subtract your annual pretax income from the previous year's poverty threshold. If the result is positive, you have an income deficit (and qualify for poverty status). If it is negative, your income is above the poverty level.
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