What does disposable income mean?

Question

What does disposable income mean?

Answer 1

Also to add to Chase's list of definitions...when discussing Chapter 13 bankruptcies "disposable income" is the amount of money you have left over (after taxes and all living expenses) that you can place toward paying off your debts.

When calculating these expenses you must go be what the government figures (as a guide), as they will either limit you to a certain amount, or question you if you declare an unusual amount of expenses.

See the link below for a very good calculator for this topic.

Answer 2

Define Disposable Income

Answer 3

Disposable income is the total amount of income an individual makes after direct taxes.

However, the term "disposable income" means a variety of things when discussing debts and other issues. In simple terms, "disposable income" is whatever money you have left after paying all required taxes and national insurances! Disposable income is after-tax income that is officially calculated as the difference between personal income and personal tax and nontax payments. In general terms, personal tax and nontax payments are about 15% of personal income, which makes disposable personal income about 85% of personal income.

When applying for certain state, federal and private benefits and protections, the term "disposable income" may change slightly. For instance, when applying for loans, mortgages, credit cards and veterans home loans, disposable income is that income left over after paying all required taxes, national insurances and all essentials such as food, clothing, and shelter.

Some state and federal assistance programs look at disposable income as "any income available for spending and saving" Generally, this means money left over after taxes and fixed costs such as rent/mortgage, food, car payments, insurance, etc.) Disposable income is also defined as the total income that can be used by a household for either consumption or saving during a given period of time, usually one year.

Another way to define disposable income is that portion of an individual's income (wages and salaries, interest and dividend payments from financial assets, and rents and net profits from businesses as well as capital gains on real or financial assets) over which the recipient has complete discretion.

Answer 4

The term 'disposable income' in real life is not physically or technically possible. The term 'disposable income' is a word made-up by the tax people and government and is only theoretical. Disposable income in real life means net wages not only after tax but after you paid all your bills and daily necessities i.e. left over income after rent, food, bills, etc, etc

see also: http://freethoughtsblog.com

Answer 5

disposable income
Definition

The amount of income left to an individual after taxes have been paid, available for spending and saving.

Answer 6

Money for spending after required items like taxes have been taken care of.

For me, I consider income disposable after I have paid all of my rent, bills, etc and have left over "fun" money.

Answer 7

That's money you can afford to give to me!!