The median divides the income distribution into two equal parts: one-half of the cases falling below the median income and one-half above the median. For households and families, the median income is based on the distribution of the total number of households and families including those with no income. The median income for individuals is based on individuals 15 years old and over with income. Median income for households, families, and individuals is computed on the basis of a standard distribution. (See the "Standard Distributions" section under "Derived Measures".) Median income is rounded to the nearest whole dollar. Median income figures are calculated using linear interpolation. (For more information on medians and interpolation, see "Derived Measures".)

The data on income were derived from answers to Questions 47 and 48, which were asked of the population 15 years old and over. "Total income" is the sum of the amounts reported separately for wage or salary income; net self-employment income; interest, dividends, or net rental or royalty income or income from estates and trusts; Social Security or railroad retirement income; Supplemental Security Income (SSI); public assistance or welfare payments; retirement, survivor, or disability pensions; and all other income.

Receipts from the following sources are not included as income: capital gains, money received from the sale of property (unless the recipient was engaged in the business of selling such property); the value of income "in kind" from food stamps, public housing subsidies, medical care, employer contributions for individuals, etc.; withdrawal of bank deposits; money borrowed; tax refunds; exchange of money between relatives living in the same household; gifts and lump-sum inheritances, insurance payments, and other types of lump-sum receipts.

Income is a vital measure of general economic circumstances. Income data are used to determine poverty status, to measure economic well-being, and to assess the need for assistance. These data are included in federal allocation formulas for many government programs. For instance:

Social Services: Under the Older Americans Act, funds for food, health care, and legal services are distributed to local agencies based on data about elderly people with low incomes. Data about income at the state and county levels are used to allocate funds for food, health care, and classes in meal planning to low-income women with children.

Employment: Income data are used to identify local areas eligible for grants to stimulate economic recovery, run job-training programs, and define areas such as empowerment or enterprise zones.

Housing: Under the Low-Income Home Energy Assistance Program, income data are used to allocate funds to areas for home energy aid. Under the Community Development Block Grant Program, funding for housing assistance and other community development is based on income and other census data.

Education: Data about poor children are used to allocate funds to counties and school districts. These funds provide resources and services to improve the education of economically disadvantaged children.

In household surveys, respondents tend to underreport income. Asking the list of specific sources of income helps respondents remember all income amounts that have been received, and asking total income increases the overall response rate and thus, the accuracy of the answers to the income questions. The eight specific sources of income also provide needed detail about items such as earnings, retirement income, and public assistance.

The data on place of birth were derived from answers to Question 7. Respondents were asked to select one of two categories: (1) in the United States, or (2) outside the United States. In the American Community Survey, respondents selecting category (1) were then asked to report the name of the state while respondents selecting category (2) were then asked to report the name of the foreign country, or Puerto Rico, Guam, etc. In the Puerto Rico Community Survey, respondents selecting category (1) were also asked to report the name of the state, while respondents selecting category (2) were then asked to print Puerto Rico or the name of the foreign country, or U.S. Virgin Islands, Guam, etc. People not reporting a place of birth were assigned the state or country of birth of another family member, or were allocated the response of another individual with similar characteristics. People born outside the United States were asked to report their place of birth according to current international boundaries. Since numerous changes in boundaries of foreign countries have occurred in the last century, some people may have reported their place of birth in terms of boundaries that existed at the time of their birth or emigration, or in accordance with their own national preference.

The place of birth questions along with the citizenship status question provide essential data for setting and evaluating immigration policies and laws. Knowing the characterisitcs of immigrants helps legislators and others understand how different immigrant groups are assimilated. Federal agencies require these data to develop programs for refugees and other foreign-born individuals. Vital information on lifetime migration among states also comes from the place of birth question.