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Glossary term

Gross income

Definition

All the money you earn before taxes and other deductions are taken out.

Gross income is the total amount of money you make from work, benefits, or other sources before anything is subtracted. This includes your wages, salary, tips, self-employment income, unemployment benefits, and other earnings.

When you apply for benefits, agencies often look at your gross income first to see if you might qualify. For example, if you apply for SNAP (the Supplemental Nutrition Assistance Program, formerly food stamps), your household's gross monthly income usually cannot be more than 130% of the federal poverty level. If your gross income is too high, you may not qualify, even if your net income (what you take home after taxes) is lower.

Some programs also look at net income, which is gross income minus allowed deductions. The deductions vary by program.

Programs where this matters

Child Tax CreditFederal · Internal Revenue ServiceThe Child Tax Credit is a federal tax credit that may lower the tax you owe if you are raising qualifying children.EITCFederal · Internal Revenue ServiceThe EITC is a federal tax credit for people who work and have low to moderate income. It may lower your tax and add to your refund.LIHEAPState-run · HHS Administration for Children and FamiliesLIHEAP helps households with low income pay heating and cooling bills, and may help in an energy crisis such as a shut-off notice.LifelineFederal · FCC / Universal Service Administrative CompanyLifeline is a federal program that may give households with low income a discount on phone or internet service.MedicaidState-run · Centers for Medicare & Medicaid ServicesMedicaid is free or low-cost health coverage run by each state with federal funding, for children, adults, pregnant people, older adults and people with disabilities.SNAPState-run · USDA Food and Nutrition ServiceSNAP gives monthly benefits on an EBT card to help households with low income buy food.WICState-run · USDA Food and Nutrition ServiceWIC gives healthy foods, nutrition education and breastfeeding support to pregnant women, new mothers, infants and young children with low income.ACA SubsidiesFederal · Centers for Medicare & Medicaid ServicesPremium tax credits may lower the monthly cost of a health plan you buy through the ACA Marketplace.CHIPState-run · Centers for Medicare & Medicaid ServicesCHIP gives low-cost health coverage to uninsured children in families that earn too much for Medicaid.Child Care AidState-run · HHS Administration for Children and FamiliesChild care assistance helps families with low income pay for child care so parents can work, look for work, or go to school or training.Extra HelpFederal · Social Security AdministrationExtra Help may lower what people with Medicare and limited income and resources pay for Medicare Part D prescription drug coverage.MSPState-run · Centers for Medicare & Medicaid ServicesMedicare Savings Programs help people with Medicare who have limited income and resources pay Medicare costs such as premiums.SSIFederal · Social Security AdministrationSSI pays monthly cash to people with limited income and resources who are older, blind or have a disability.Section 8Local · US Department of Housing and Urban DevelopmentHousing Choice Vouchers, often called Section 8, help families with low income pay rent for a home they find in the private market.TANFState-run · HHS Administration for Children and FamiliesTANF gives cash help and support services to families with children who have low income. Each state runs its own program.WeatherizationState-run · US Department of EnergyThe Weatherization Assistance Program makes free energy-saving home improvements, like insulation and heating repairs, for households with low income.