The Poverty Rate Is an Absolute Level of Income Set

question 150

True/False

The poverty rate is an absolute level of income set by the federal government for each family size. A family with income below this rate is deemed to be in poverty.

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Definitions:

Exemption

Deductions allowed by law to reduce taxable income based on taxpayer and dependent information.

Gross Income Test

A criterion used by the IRS to determine if someone can be claimed as a dependent based on their gross income.

Relationship Test

Criteria used by the IRS to determine eligibility for certain tax benefits and deductions, based on the taxpayer's relationship to another individual.

Age Test

A criteria used in various legal and financial contexts to determine eligibility based on an individual's age.