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 residence 1 year ago were derived from answers to Question 15, which were asked of the population 1 year and older. For the American Community Survey, people who had moved from another residence in the United States or Puerto Rico 1 year earlier were asked to report the exact address (number and street name); the name of the city, town, or post office; the name of the U.S. county or municipio in Puerto Rico; state or Puerto Rico; and the ZIP Code where they lived 1 year ago. People living outside the United States and Puerto Rico were asked to report the name of the foreign country or U.S. Island Area where they were living 1 year ago.

For the Puerto Rico Community Survey, people who moved from another residence in Puerto Rico or the United States 1 year ago were asked to report the exact address, including the development or condominium name; the name of the city, town, or post office; the municipio in Puerto Rico (county equivalent) or county in the U.S.; and the ZIP Code where they lived. People living outside Puerto Rico and the United States were asked to report the name of the foreign country or U.S. Island Area where they were living 1 year ago.

Residence 1 year ago is used in conjunction with location of current residence to determine the extent of residential mobility of the population and the resulting redistribution of the population across the various states, metropolitan areas, and regions of the country.

When no information on previous residence was reported for a person, information for other family members, if available, was used to assign a location of residence 1 year ago. All cases of nonresponse or incomplete response that were not assigned a previous residence based on information from other family members were allocated the previous residence of another person with similar characteristics who provided complete information.

The tabulation category, "Same house," includes all people 1 year and over who did not move during the 1 year as well as those who had moved and returned to their residence 1 year ago. The category, Different house in the United States includes people who lived in the United States 1 year ago but in a different house or apartment from the one they occupied at the time of interview. These movers are then further subdivided according to the type of move.

In most tabulations, movers within the U.S. are divided into three groups according to their previous residence: "Different house, same county," "Different county, same state," and "Different state." The last group may be further subdivided into region of residence 1 year ago. An additional category, "Abroad," includes those whose previous residence was in a foreign country, Puerto Rico, American Samoa, Guam, the Northern Marianas, or the U.S. Virgin Islands, including members of the Armed Forces and their dependents. Some tabulations show movers who were residing in Puerto Rico or one of the U.S. Island Areas 1 year ago separately from those residing in foreign countries.

In most tabulations, movers within Puerto Rico are divided into two groups according to their residence 1 year ago: "Same municipio," and "Different municipio." Other tabulations show movers within or between metropolitan areas similar to the stateside tabulations.