In determining the poverty status of families and unrelated individuals, the Census Bureau uses thresholds (income cutoffs) arranged in a two-dimensional matrix. The matrix consists of family size (from one person to nine or more people) cross-classified by presence and number of family members under 18 years old (from no children present to eight or more children present). Unrelated individuals and two-person families are further differentiated by age of reference person (RP) (under 65 years old and 65 years old and over).

To determine a person's poverty status, one compares the person's total family income in the last 12 months with the poverty threshold appropriate for that person's family size and composition (see example below). If the total income of that person's family is less than the threshold appropriate for that family, then the person is considered "below the poverty level," together with every member of his or her family. If a person is not living with anyone related by birth, marriage, or adoption, then the person's own income is compared with his or her poverty threshold. The total number of people below the poverty level is the sum of people in families and the number of unrelated individuals with incomes in the last 12 months below the poverty threshold.

Since ACS is a continuous survey, people respond throughout the year. Because the income questions specify a period covering the last 12 months, the appropriate poverty thresholds are determined by multiplying the base-year poverty thresholds (1982) by the average of the monthly inflation factors for the 12 months preceding the data collection. See the table in Appendix A titled "Poverty Thresholds in 1982, by Size of Family and Number of RelatedChildren Under 18 Years (Dollars)," for appropriate base thresholds. See the table "The 2011 Poverty Factors" in Appendix A for the appropriate adjustment based on interview month.

For example, consider a family of three with one child under 18 years of age, interviewed in July 2011 and reporting a total family income of $14,000 for the last 12 months (July 2010 to June 2011). The base year (1982) threshold for such a family is $7,765, while the average of the 12 inflation factors is 2.24574 Multiplying $7,765 by 2.24574 determines the appropriate poverty threshold for this family type, which is $17,438 Comparing the family's income of $14,000 with the poverty threshold shows that the family and all people in the family are considered to have been in poverty. The only difference for determining poverty status for unrelated individuals is that the person's individual total income is compared with the threshold rather than the family's income.

Since poverty is defined at the family level and not the household level, the poverty status of the household is determined by the poverty status of the householder. Households are classified as poor when the total income of the householder's family in the last 12 months is below the appropriate poverty threshold. (For nonfamily householders, their own income is compared with the appropriate threshold.) The income of people living in the household who are unrelated to the householder is not considered when determining the poverty status of a household, nor does their presence affect the family size in determining the appropriate threshold. The poverty thresholds vary depending upon three criteria: size of family, number of children, and, for one- and two- person families, age of the householder.

Derivation of the Current Poverty Measure - When the original poverty definition was developed in 1964 by the Social Security Administration (SSA), it focused on family food consumption. The U.S. Department of Agriculture (USDA) used its data about the nutritional needs of children and adults to construct food plans for families. Within each food plan, dollar amounts varied according to the total number of people in the family and the family's composition, that is, the number of children within each family. The cheapest of these plans, the Economy Food Plan, was designed to address the dietary needs of families on an austere budget.

Since the USDA's 1955 Food Consumption Survey showed that families of three or more people across all income levels spent roughly one-third of their income on food, the SSA multiplied the cost of the Economy Food Plan by three to obtain dollar figures for total family income. These dollar figures, with some adjustments, later became the official poverty thresholds. Since the Economy Food Plan budgets varied by family size and composition, so too did the poverty thresholds. For two-person families, the thresholds were adjusted by slightly higher factors because those households had higher fixed costs. Thresholds for unrelated individuals were calculated as a fixed proportion of the corresponding thresholds for two-person families.

The poverty thresholds are revised annually to allow for changes in the cost of living as reflected in the Consumer Price Index for All Urban Consumers (CPI-U). The poverty thresholds are the same for all parts of the country; they are not adjusted for regional, state, or local variations in the cost of living.

Beginning in 2006, the population in group quarters (GQ) is included in the ACS. The part of the group quarters population in the poverty universe (for example, people living in group homes or those living in agriculture workers' dormitories) is many times more likely to be in poverty than people living in households. Direct comparisons of the data would likely result in erroneous conclusions about changes in the poverty status of all people in the poverty universe.

Because of differences in survey methodology (questionnaire design, method of data collection, sample size, etc.), the poverty rate estimates obtained from American Community Survey data may differ from those reported in the Current Population Survey, Annual Social and Economic Supplement, and those reported in Census 2000. Please refer to
(http://www.census.gov/hhes/www/poverty/about/datasources/description.html) for more details.

The data on work status in the past 12 months were derived from answers to Question 38. People 16 years old and over who worked 1 or more weeks according to the criteria described below are classified as "Worked in the past 12 months." All other people 16 years old and over are classified as "Did not work in the past 12 months."

The data on weeks worked in the past 12 months were derived from responses to Question 39, which was asked of people 16 years old and over who indicated that they worked during the past 12 months.

The data pertain to the number of weeks during the past 12 months in which a person did any work for pay or profit (including paid vacation and paid sick leave) or worked without pay on a family farm or in a family business. Weeks of active service in the Armed Forces are also included.

The data on usual hours worked per week worked in the past 12 months were derived from answers to Question 40. This question was asked of people 16 years old and over who indicated that they worked during the past 12 months.

The data pertain to the number of hours a person usually worked during the weeks worked in the past 12 months. The respondent was to report the number of hours worked per week in the majority of the weeks he or she worked in the past 12 months. If the hours worked per week varied considerably during the past 12 months, the respondent was to report an approximate average of the hours worked per week.

People 16 years old and over who reported that they usually worked 35 or more hours each week during the weeks they worked are classified as "Usually worked full time;" people who reported that they usually worked 1 to 34 hours are classified as "Usually worked part time."

All people 16 years old and over who usually worked 35 hours or more per week for 50 to 52 weeks in the past 12 months.

The term "worker" as used for these data is defined based on the criteria for work status in the past 12 months.

Beginning in 2008, the weeks worked question was separated into 2 parts: part (a) asked whether the respondent worked 50 or more weeks in the past 12 months and part (b) asked respondents who answered 'no' to part (a) how many weeks they worked, even for a few hours.

It is probable that the number of people who worked in the past 12 months and the number of weeks worked are understated since there is some tendency for respondents to forget intermittent or short periods of employment or to exclude weeks worked without pay. There may also be a tendency for people not to include weeks of paid vacation among their weeks worked; one result may be that the American Community Survey figures understate the number of people who worked "50 to 52 weeks."

The American Community Survey data refer to the 12 months preceding the date of interview. Since not all people in the American Community Survey were interviewed at the same time, the reference period for the American Community Survey data is neither fixed nor uniform.

Beginning in 2006, the population in group quarters (GQ) is included in the ACS. Some types of GQ populations may have work experience distributions that are different from the household population. The inclusion of the GQ population could therefore have a noticeable impact on the work experience distribution. This is particularly true for areas with a substantial GQ population.

The Census Bureau tested the changes introduced to the 2008 version of the weeks worked question in the 2006 ACS Content Test. The results of this testing show that the changes may introduce an inconsistency in the data produced for this question as observed from the years 2007 to 2008, see "2006 ACS Content Test Evaluation Report Covering Weeks Worked" (www.census.gov/acs).

For information on Work Experience data comparability, please see the comparability section for Employment Status.