The poverty level is computed by the US Census Bureau following the Office of Management Statistical Directive #14 https://www.census.gov/topics/income-poverty/poverty/guidance/poverty-measures.html The POVPIP value in the PUMS data is determined based on the ACS variables.
See
American Community Survey
and
Puerto Rico Community
Survey
2022 Subject Definitions
https://www2.census.gov/programs-surveys/acs/tech_docs/subject_definitions/2022_ACSSubjectDefinitions.pdf
for the details including the calculation
The calculation uses "total income" item on the acs questionnaire item #44 (reported for each person in the household). The total household income is the total income for all of the householder's family members.
The poverty thresholds vary by year. The 5 year PUMS data is a combination of the underlying 5 1 year PUMS files. For the 2017-2021 5 year file the 2017 records use the 2017 thresholds the 2018 records use the 2018 thresholds etc
https://www.census.gov/content/dam/Census/library/publications/2021/acs/acs_pums_handbook_2021_ch01.pdf
ACS questionnaire with the text of questions along with the instruction.
www2.census.gov/.../quest23.pdf
Also see
www.census.gov/.../poverty-measures.html
Best Dave Dorer