Gross and Net Income

Front

What is Gross Income?

Back

Gross Income is the total amount of money earned before any deductions are taken out.

Front

What is Net Income?

Back

Net Income is the amount of money you receive after deductions are subtracted from your gross income.

Front

How do you calculate Net Income?

Back

Net Income = Gross Income - Deductions.

Front

What are Deductions?

Back

Deductions are amounts of money that are subtracted from your gross income, such as taxes and insurance.

Front

If David's gross income is $127.25 and his deductions are $25.20, what is his net income?

Back

$102.05

Front

What is the total amount of Marco's deductions if he has Federal Income tax: $44, Social Security tax: $23, Medicare tax: $5, and Health Insurance: $24?

Back

$96

Front

If Yvonne's net income is $451.82 and her deductions are $251.18, what is her gross income?

Back

$703

Front

If Amorelle made $384 in gross income and her deductions are $122, what is her net income?

Back

$262

Front

What does it mean if someone says they have a high gross income?

Back

It means they earn a large amount of money before any deductions.

Front

What is the purpose of deductions?

Back

Deductions reduce the amount of income that is taxable, which can lower the amount of taxes owed.