How are median,average,disposable incomes calculated?
Average and median incomes can be calculated using tax receipts. Companies must withhold federal income tax from employees’ paychecks every week/two weeks. Data is also collected by states with state income taxes. This data is usually collected and broken down by a number of demographics – race, education, family status, location, etc. Disposable income is income after taxes – money that you can “dispose” of on goods and services.
