GENERAL KNOWLEDGE

Detailed explanation-1: -What is a Discretionary Income? Discretionary income is the amount of money left for an individual to spend or save after paying taxes and for personal needs, such as food, lodging, and clothes. Discretionary income includes money spent on luxury goods, holidays, and non-essential goods and services.

Detailed explanation-2: -Discretionary income is the money you have left over after paying taxes and necessary cost-of-living expenses-like your rent or mortgage, utilities and groceries. It’s called “discretionary income” because it can be used for discretionary expenses-nice-to-haves but not necessities.

Detailed explanation-3: -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-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: -Profit is the money you have left after paying for business expenses. There are three main types of profit: gross profit, operating and net profit. Gross profit is biggest. It shows what money was left after paying for the goods and services sold.