Poverty Guidelines

[Rasberry.B 4]

I was wondering if these poverty guidelines are based on gross income or net?

I am self employed while in school and don't know if I should benefit from deductions and expenses to pay less taxes or try to show my profit higher which means I have to pay more taxes.

[pushbrk 12,876]

3 hours ago, Dr.Aria said:

I was wondering if these poverty guidelines are based on gross income or net?

I am self employed while in school and don't know if I should benefit from deductions and expenses to pay less taxes or try to show my profit higher which means I have to pay more taxes.

They are "gross income" not "gross revenue".  If you are self employed, your current income is the "total income" line from your most recently filed tax return.  "Total income" is revenue minus expenses.

[Rasberry.B 4]

3 hours ago, pushbrk said:

They are "gross income" not "gross revenue".  If you are self employed, your current income is the "total income" line from your most recently filed tax return.  "Total income" is revenue minus expenses.

So let do an example:

 

If my company receives 30,000 USD in 2023, and I claim 5,000 USD as my expenses.  My income would be 25k that is above the poverty guidelines, right?

[pushbrk 12,876]

8 hours ago, Dr.Aria said:

So let do an example:

 

If my company receives 30,000 USD in 2023, and I claim 5,000 USD as my expenses.  My income would be 25k that is above the poverty guidelines, right?

Correct calculation provided it matches the 2023 tax return, which you will not file until early 2024, at the earliest.  Yes, it's above the minimum of 124% of the poverty level for a household of two.