What is “federal poverty level”?

Published 11/06/2014 08:35 AM   |    Updated 10/27/2015 02:19 PM
What is “federal poverty level”?  

Federal poverty level guidelines are used to show income levels and to help determine if a consumer is eligible for a premium tax credit. Consumers whose incomes are less than 400 percent of the federal poverty level are eligible for premium tax credits. They are also used to determine the amount of premium tax credits that consumers can claim on their tax returns. Federal poverty level guidelines are updated every year by the Department of Health and Human Services (HHS). Federal poverty level guidelines for 2016 will be published in January 2016.

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