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examples of calculating income eligibility

Example 1: X lives with her grandfather, mother, father, husband and son. They are a household of 6. The only income earners in the household are X, her husband, and her father. Based on their most recent tax return, this is each income earner’s annual income:

 

X: $20,000

Husband: $12,500

Father: $17,500

 

When you add their annual income, their household annual income is $50,000. For a household of 6, the 200% Federal Poverty level is $65,160. Because this household’s annual income is less than this, they are income eligible.

 

Example 2: X lives with 3 college classmates in off-campus housing. While the 4 of them contribute towards rent, they are financially independent from each other (buy food on their own, pay their own bills, etc.) X is also no longer financially supported by his parents.

 

X would be considered a household of 1. He makes approximately $5,000 a year from work study. Because the 200% FPL for a household of 1 is $23, 760, and X’s income is well below that, he is income eligible.

 

Example 3: X goes to college away from home and lives on campus, but her parents support her financially. X is able to go home during the summer and live with them while receiving financial support. Her sister also lives with her parents and contributes towards their general household living expenses.

 

They consider themselves a household of 4. Based on their tax return, this is each income earner’s annual income:

 

X’s Mother: $30,000

X’s Father: $45,000

X’s Sister: $28,000

 

Their household annual income is $103,000. For a household of 4, the 200% FPL is $48,600. Because X’s household annual income is above that, she is not income eligible.