What Constitutes Low Income?

by Neil Kokemuller
Blue-collar workers often have low- to lower-middle incomes.

"Low income" is open to interpretation, but people with incomes below the poverty line are generally considered low-income earners. According to a September 2012 "U.S. News & World Report" article, the poverty line at that point was in an income of $23,050 for a family of four. About 15 percent of Americans earned incomes below that line. The lower-middle class income range was considered $32,500 to $60,000, so anyone below $32,500 was considered lower class in income.

More Low-Income Factors

Many people who fall within the lowest 20 to 30 percent of income earners actually perceive themselves as middle class, according to FinAid.org. While a low income limits your spending abilities, you do normally pay a smaller portion of taxes and may even qualify for earned income credit, which leads to a bigger tax refund. Some financial aid opportunities are also need-based, which favors low-income households.

About the Author

Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.

Photo Credits

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