How is the Self-Sufficiency Standard Calculated?
First, the basic costs for each family type (which vary by number and age of children, and by number of adults) are added in each county or metropolitan statistical area. Ten percent of this total is added to account for miscellaneous costs. Second, taxes and tax credits are calculated using formulas that are specific with regard to state income and sales tax. Finally, the total income is checked for certain assumptions in the model-such as whether the proper Child Care Tax Credit rate has been used-and adjusted as appropriate.
