How Do I Calculate My Annual Household Income?
Annual household income is a term used to describe a person’s financial status. Specifically, it describes the combined income of all the members of a person’s household. Generally, the amount that is used to express annual household income is the gross amount of income, rather than the net amount. This means it is the pre-tax income that is used for determining income level, rather than the amount received after taxes have been deducted. Determine how much money you made for the year prior to any tax deductions. This amount should include all sources of income, such as salaries, wages, business profits, pensions, dividends, rent and interest. Determine how much money the other members of your household made for the year. This includes any money earned by a spouse, parent, child or any other person permanently residing in the home. Combine your total income with the incomes of the other household members. The sum is your annual household income. For example, if you earned $30,000 for t
