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What is State Median Income? A Comprehensive Legal Overview
Definition & Meaning
The term "state median income" refers to the median income level for households within a specific state. This figure is established by the Secretary of the Department of Health and Human Services according to guidelines set out in federal law. The state median income is adjusted based on the number of individuals living in a household, which helps to reflect the economic conditions of different family sizes.
Table of content
Legal Use & context
State median income is commonly used in various legal contexts, particularly in programs related to public assistance and housing. It plays a crucial role in determining eligibility for benefits such as:
Low-Income Home Energy Assistance Program (LIHEAP)
Housing assistance programs
Income-based tax credits
Understanding state median income can help individuals navigate these programs and determine their eligibility for assistance. Users can find legal templates and forms on US Legal Forms to assist with applications and related procedures.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Here are a couple of examples of how state median income is applied:
Example 1: A family of four in California may qualify for housing assistance if their income is below the state median income for a household of that size.
Example 2: An individual applying for energy assistance in Texas must demonstrate that their income is below the state median income to be eligible for support (hypothetical example).
Relevant laws & statutes
The concept of state median income is primarily governed by federal laws, including:
42 USCS § 8622 - Low-Income Home Energy Assistance
42 USCS § 1397a(a)(6) - Social Security Act regarding state median income calculations
State-by-state differences
State
Median Income (2023)
California
$84,000
Texas
$60,000
New York
$75,000
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Median Income
The middle income value in a list of incomes.
State median income is specific to a state's population and adjusted for household size.
Average Income
The total income divided by the number of income earners.
Average income can be skewed by very high or very low incomes, while median income provides a better representation of typical earnings.
Common misunderstandings
What to do if this term applies to you
If you believe you may qualify for assistance based on state median income, consider the following steps:
Check your household size and income against the state median income guidelines.
Gather necessary documentation, such as income statements and household information.
Explore resources and legal forms available on US Legal Forms to assist with your application process.
If your situation is complex, consider seeking advice from a legal professional.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.