It includes all income. Keep in mind that this is just the federal govt's definition of poverty, and it, in itself, doesn't make you eligible for anything--however, the numbers are often used as a baseline for eligibility for various govt programs--those may also have program specific inclusions and exclusions--

Below is information on how the guidlines are derived--which, i think, are pretty entertaining, but then, I am easily amused--

Poverty Thresholds

In 1963-1964, Molly Orshansky of the Social Security Administration developed poverty thresholds. Orshansky based her poverty thresholds on the "thrifty food plan," which was the cheapest of four food plans developed by the Department of Agriculture. The food plan was "designed for temporary or emergency use when funds are low," according to the USDA. Based on the 1955 Household Food Consumption Survey from the USDA (the latest available survey at the time), Orshansky knew that families of three or more persons spent about one third of their after-tax income on food. She then multiplied the cost of the USDA economy food plan by three to arrive at the minimal yearly income a family would need. Using 1963 as a base year, she calculated that a family of four, two adults and two children would spend $1,033 for food per year. Using her formula based on the 1955 survey, she arrived at $3,100 a year ($1,033 x3) as the poverty threshold for a family of four in 1963.

Orshansky differentiated her thresholds not only by family size, but also by farm/non-farm status, by the number of family members who were children, gender of the head of household, and by aged/non-aged status. The result was a detailed matrix of 124 poverty thresholds. Generally, the figures cited were weighted average thresholds for each family size.

In May 1965, one year after the Johnson Administration initiated the "War on Poverty," the Office of Economic Opportunity adopted Orshansky's poverty thresholds as a working definition of poverty. Soon after, Social Security Administration policymakers and analysts expressed concern about how to adjust the poverty thresholds for increases in the standard of living. In 1969, the Poverty Level Review Committee was designated to re-evaluate the poverty thresholds for the Bureau of the Budget. After doing so, the Committee decided to adjust the thresholds for price changes, and not for changes in the general standard of living. The thresholds would be indexed by the Consumer Price Index rather than the per capita cost of the thrifty food plan. The Bureau of the Budget—now the Office of Management and Budget -- designated the poverty thresholds, with their revisions, as the federal government's official statistical definition of poverty.