What type of eligibility for financial benefits is determined by taxable income?

The determination of eligibility for financial benefits based on taxable income falls within the category of means-tested benefits. Means testing is a process used by various programs to assess whether an individual or household's resources, including income and assets, fall below a certain threshold. Specifically, taxable income is a key component in this evaluation, as it provides a clear measure of an individual's financial situation.

Means-tested benefits are designed to provide assistance to individuals and families who have limited financial resources. By examining taxable income, authorities can ensure that only those in genuine need receive support, allowing for more targeted aid that aligns with the economic situation of applicants.

Options such as universal benefits do not consider the financial status of the recipients; they are available to all individuals regardless of income or assets. Income-based benefits could potentially align with this concept but are usually more broadly defined, often incorporating various forms of income beyond just taxable income. Asset-tested benefits focus specifically on the value of an individual's assets rather than their income level. Therefore, means-tested is the most accurate term for describing the eligibility criteria that use taxable income as a determining factor.