ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Discretionary income is the amount of income that is left for an individual, household, or business after paying the necessary or essential expenses. Necessary expenses are expenses that are required either by law or are needed for survival.

Detailed explanation-2: -Pertaining to the Income-Contingent Repayment Plan, discretionary income is the difference between your annual income and 100 percent of the poverty guideline for your family size and state of residence. The poverty guidelines are maintained by the U.S. Department of Health and Human Services.

Detailed explanation-3: -Discretionary income is the amount of an individual’s income that is left for spending, investing, or saving after paying taxes and paying for personal necessities, such as food, shelter, and clothing. Discretionary income includes money spent on luxury items, vacations, and nonessential goods and services.

Detailed explanation-4: -Very simply, disposable income is money you have after taking out/paying your taxes. Discretionary income is money left over after paying your taxes and other living expenses (rent, mortgage, food, heat, electric, clothing, etc.). Discretionary income is based on and derived from your disposable income.

Detailed explanation-5: -The term “disposable income” is used to describe the amount of money left over after taxes have been taken out of a person’s or family’s earnings. Discretionary income, on the other hand, is what’s left after a person pays their taxes and their fixed costs like housing, food, and clothing.