Federal Poverty Level - FPL

What is the 'Federal Poverty Level - FPL'

The federal poverty level (FPL) is the set minimum amount of gross income that a family needs for food, clothing, transportation, shelter and other necessities. In the United States, this level is determined by the Department of Health and Human Services. FPL varies according to family size. The number is adjusted for inflation and reported annually in the form of poverty guidelines. Public assistance programs, such as Medicaid in the U.S., define eligibility income limits as some percentage of FPL.

BREAKING DOWN 'Federal Poverty Level - FPL'

The poverty guidelines are typically issued every February and correspond to the year in which they are issued. For example, the guidelines issued in Feb 2011 are designated as the 2011 poverty guidelines. (In 2011, the gross yearly FPLs were $18,530, $22,350 and $26,170 for families sizes of three, four and five, respectively.) However, when determining an individual's or a family's eligibility for receiving benefits, some government agencies compare before-tax income to the poverty guidelines, while others compare after-tax income. Likewise, eligibility limits may be based on gross income, net income or some other measure of income.

RELATED TERMS
  1. Poverty Gap

    The average shortfall of the total population from the poverty ...
  2. Poverty Trap

    A mechanism which makes it very difficult for people to escape ...
  3. Poverty

    A state or condition in which a person or community lacks the ...
  4. International Poverty Line

    An international monetary threshold under which an individual ...
  5. Advanced Premium Tax Credit

    A type of federal subsidy that reduces the amount individuals ...
  6. Cost-Sharing Reductions

    A type of federal subsidy distributed as discounts that help ...
Related Articles
  1. Economics

    Understanding Poverty

    Poverty exists when a person’s or community’s basic needs are not being met because financial resources are lacking.
  2. Budgeting

    Why Being Poor Is So Expensive

    The less you earn, the more you're likely to spend for the everyday necessities of life.
  3. Economics

    America's Poorest States in 2015

    Learn the reasons Mississippi, New Mexico, Louisiana, Georgia and Kentucky are the poorest states in the United States, as of 2015.
  4. Qualifying for Lower Premiums and Out-of-Pocket Expenses

    Many people will qualify for new federal subsidies that can help lower health costs, both the premiums and the care itself. When you get coverage through the Marketplace, you may be eligible ...
  5. Mutual Funds & ETFs

    Picking Top-Quality Hedge Funds

    Narrowing down your choices is the first step to finding a winning fund.
  6. Taxes

    What is Gross Income?

    Gross income is an individual’s total income before taxes and other adjustments are considered.
  7. Personal Finance

    How Minimum Wage Impacts Unemployment

    We explain how the minimum wage affects unemployment, public assistance, and the economy overall.
  8. Your Practice

    How Advisors Can Appeal to Nontraditional Families

    So-called traditional families represent less than 20% of U.S. households today. Here's how advisors can adjust.
  9. Investing

    Family Philanthropy: Developing a Cohesive Strategy

    Devising a cohesive family philanthropy strategy requires proper goal alignment, planning, management, procedural rules and constant evaluation.
  10. Economics

    10 Wealthiest States in the United States

    A review of the 10 richest states in America as ranked by median household income.
RELATED FAQS
  1. What is the difference between gross income and earned income?

    Being able to distinguish between earned income and gross income is an important tool in preparing for and filing your individual ... Read Answer >>
  2. What are the differences between gross profit and net income?

    Find out how companies determine gross profits and net income, and how these figures provide quick snapshots of their financial ... Read Answer >>
  3. What are the differences among gross income, adjusted gross income and modified adjusted ...

    Discover how calculating total taxable income is easier when gross income, adjusted gross income and modified adjusted gross ... Read Answer >>
  4. How does a bank determine what my discretionary income is when making a loan decision?

    Learn how banks determine your discretionary income, and discover why it is important to know your discretionary income even ... Read Answer >>
  5. What is the difference in tax liability between gross income and other kinds of income?

    Find out how the U.S. government taxes worker's earnings, whether it is gross income or income exempted or excluded from ... Read Answer >>
  6. What is the difference between gross income and taxable income?

    Understanding common tax terms including gross income and taxable income can help individuals navigate tax accounting in ... Read Answer >>
Hot Definitions
  1. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  2. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  3. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  4. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  5. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center