Gross Income Vs. Net Income

Front

What is a deduction?

Back

A deduction is money taken out of your income.

Front

What is gross income?

Back

Gross income is the total amount of money you earn.

Front

If Adam earns $13 for each lawn he mows and mows 37 lawns, what is his gross income?

Back

His gross income is exactly $481.

Front

What is net income?

Back

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

Front

What does net income represent?

Back

Net income represents the amount of money you have after taxes.

Front

What is the difference between gross income and net income?

Back

Gross income is the total earnings before deductions, while net income is what you take home after deductions.

Front

What is an example of a deduction?

Back

Taxes taken from your paycheck are an example of a deduction.

Front

How do you calculate net income?

Back

Net income is calculated by subtracting total deductions from gross income.

Front

What does 'after tax' mean in relation to income?

Back

'After tax' refers to the amount of money remaining after all taxes have been deducted.

Front

What is the formula for calculating gross income?

Back

Gross income = Total earnings before deductions.