tdiu How To Determine Whether Income Falls Below The Poverty Threshold

[Sergeant G]

Hi,

I had my DRO hearing a couple of days ago and I was awarded TDIU, but the DRO and I disagree about the effective date. 38 CFR 4.16 deems employment to be marginal if "annual income" falls below the poverty threshold established by the U.S. Dept. of Commerce, Census Bureau. On the Census Bureau's website, it defines "annual" as a calendar year. The VA, however, is defining annual as the last 12 months of employment. Under the Census Bureau's definition, my employment was marginal, whereas under the VA's definition, my employment was above the poverty threshold. I believe the Census Bureau's definition should be controlling since 38 CFR 4.16 refers to it to determine marginal employment. Does anyone agree or have any additional thoughts? Thanks!

[PHS60]

Are we talking about earned income or any income? I have no earned income but some passive income from investments.

No, I am refering to income generated by work as a sub contractor. This 1099 form is issued by employers to peopple or companies they employ as SUB CONTRACTOR"S. These's sub are NOT employees of the employer and preform a specific job or funtion as contracted. There are no TAXES deducted by the issuer of the 1099. I have looked this issue up on the Poverty Guidlines which states the figure is determined on "PRETAX CASH INCOME." One theory is that the 1099 is the pre tax income. This is true however this is not the cash income since the sub incurred deductible expenses so as to perform the job or function. Example: I am an owner of a computer repair company. I contract to repair computers that another companies manufaters. If none need repaired; no pay. If one needs repaired I extend my service to go repair the computer. I get paid.

Note, for me to provide this service I must have a computer and other diagnostic equipment. I buy or lease this equipment therfore these items are deductible from the 1099 amount to determine my "PRETAX CASH INCOME."

So, once these items are deducted THEN do I have my "PRETAX CASH INCOME? If this theory is correct the noted amount then would be compared to the poverty level guidlines.

[pacmanx1]

How the Census Bureau Measures Poverty

Following the Office of Management and Budget's (OMB) Statistical Policy Directive 14, the Census Bureau uses a set of money income thresholds that vary by family size and composition to determine who is in poverty. If a family's total income is less than the family's threshold, then that family and every individual in it is considered in poverty. The official poverty thresholds do not vary geographically, but they are updated for inflation using Consumer Price Index (CPI-U). The official poverty definition uses money income before taxes and does not include capital gains or noncash benefits (such as public housing, Medicaid, and food stamps).

Found; http://www.census.go...ds/measure.html

Edited October 27, 2010 by pacmanx1

[john999]

I think I would go ask these questions from a CPA. You don't want to make some kind of mistake and then find out you are wrong. If this is going to cause problems with compensation I would get an expert to tell me.

[Pete53]

The 2009 Poverty Guidelines for the

48 Contiguous States and the District of Columbia

Persons in family Poverty guideline

1 $10,830

2 14,570

3 18,310

4 22,050

5 25,790

6 29,530

7 33,270

8 37,010

For families with more than 8 persons, add $3,740 for each additional person.