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Federal Poverty Level 2012

According to the U.S. Census Bureau’s data released on Tuesday September 13, 2011, the nation’s poverty rate rose to 15.1% (46.2 million) in 2010.

In the U.S., government defines poverty on an absolute level and not on a level relative to median income as practiced in most of the European countries and other OECD members. For example, the poverty level for 2011 was set at a total yearly income $22,350 for a family of four. This was set at $22,050 in 2009. Relative does not imply that the person is lacking acceptable amount of money or material possessions.

The U.S. Census Bureau intends to use this data as a statistical benchmark. One should not take it as an explanation of what people and families need to live. According to a report, rates of poverty are persistently higher in rural and inner cities of the country as compared to suburban areas. The number of people in the U.S., who are in poverty is increasing to record levels. Government aid programs follow a slightly different set of poverty guidelines. Food stamps, Medicaid, Temporary Assistance for Needy Families and State Child Health Insurance Program fall in this category. There is one major set of guidelines for 48 states. Moreover, there are separate guidelines for states of Alaska and Hawaii.

People surveyed does not include those living in institutional group accommodations such as nursing homes or prisons, students living in college dormitories and those currently residing in military barracks. In addition, homeless people do not figure out in this cluster. To compute an unrelated individual or a family’s total income, combined annual earnings from various sources excluding taxes and capital gains are taken into account. The sample size used to represent entire population is quite adequate from a statistical point of view. It currently stands at a hundred thousand households surveyed all over the country.