Anyway, does anyone know what decompenation is? What does it mean? What does a person decompensate from? So the back story that you can skip if you want is this: three years ago I was in a PHP program and I had a bit of a mental breakdown there.
From the standpoint of an individual, disposable income is the income that you have left over after you have paid all taxes and other mandatory expenses such as home loan payments, consumer loan payments, and child support obligations.
Disposable Income = Gross Income-Taxes. So, let s say that your monthly gross income is $4,500, and $1,200 a month is subtracted for various taxes: $4,500 Gross Income - $1,200 Taxes = $3,300 Disposable Income. Disposable income is money that needs to cover food, shelter, clothes, non-essential purchases, savings, etc.isposable Income = Gross Income-Taxes. So, let s say that your monthly gross income is $4,500, and $1,200 a month is subtracted for various taxes: $4,500 Gross Income - $1,200 Taxes = $3,300 Disposable Income. Disposable income is money that needs to cover food, shelter, clothes, non-essential purchases, savings, etc.