Gross Income Vs. Net Income

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What is Net Income?

Back

Net Income is the amount of money you have after taxes and deductions are taken out.

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CCSS.7.RP.A.3

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What is Gross Income?

Back

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

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What are deductions?

Back

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

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CCSS.7.NS.A.1D

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If Marco has deductions of $96, what does that mean?

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It means that $96 is taken out of his gross income for taxes and other expenses.

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CCSS.6.NS.C.7C

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How do you calculate Net Income?

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Net Income = Gross Income - Total Deductions.

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CCSS.7.RP.A.3

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If Angel earns $15 an hour and works 7 hours, what is his Gross Pay?

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Gross Pay = $15/hour * 7 hours = $105.

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CCSS.7.EE.B.3

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If Angel's total deductions are $12, what is his Net Pay?

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Net Pay = Gross Pay - Deductions = $105 - $12 = $93.

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CCSS.7.NS.A.1B

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What is the formula to find Gross Income if you know Net Income and Deductions?

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Gross Income = Net Income + Total Deductions.

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CCSS.7.RP.A.3

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If Yvonne's Net Income is $451.82 and her deductions are $251.18, what is her Gross Income?

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Gross Income = $451.82 + $251.18 = $703.

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CCSS.6.NS.B.3

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What does it mean if someone has a high Gross Income?

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It means they earn a lot of money before any deductions are taken out.