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this post was submitted on 26 Apr 2024
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How do they calculate your household income when you can't afford a household?
I think you're being glib, but my assumption is they are using household in the IRS sense, I e. A household consists of any one taxpayer and whoever they can claim as dependents.
No, I honestly didn't know. Thank you. So if more than one person lives in a house, if they are unrelated (i.e. roommates, no dependents) it's more than one household?
Yes, for tax purposes, which then implies such a metric can be used for income reporting, as is this case with this chart. After all, if you and a platonic roommate were sharing an apartment, you probably wouldn't want to include their income on your filings to the IRS. For one, the illegality of falsely claiming a dependent, but also simply because the last thing you want the government thinking is that you made more money than you actually did.
That makes sense. Thanks.
I didn't realize that you were linking to the same paper I had found independently and is the source of the parent comment. The way they are calculating household income isn't the same as the IRS.
It's a wonky calculation.