Question

If julio ruiz has an income of $30,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in taxes per year, is disposable income is

Answer 1

Disposable income is defined as any and all income that one has less the taxes and other mandatory payments one must make. In Julio's case, this would be the $30,000 he has earned less the $5,000 he pays in taxes yearly. The rent and utilities would not be considered, leaving a disposable income value of $25,000.