Gross and Net Income

Front

What is net income?

Back

The amount of money you receive after deductions are subtracted from your gross income.

Front

What is gross income?

Back

The total amount of money you earn before any deductions are taken out.

Front

If Angel works 7 hours at $15 per hour, what is his gross pay?

Back

$105

Front

If Angel's total deductions are $12, what is his net income if his gross pay is $105?

Back

$93

Front

What are deductions?

Back

Amounts of money taken away from your gross income, such as taxes and insurance.

Front

How do you calculate net income?

Back

Net Income = Gross Income - Total Deductions.

Front

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

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 Alexis worked 24 hours at a rate of $12 per hour, what is her gross pay?

Back

$288

Front

What is the purpose of calculating net income?

Back

To determine how much money you actually take home after deductions.