Gross Income Vs. Net Income

Front

What is Net Income?

Back

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

Front

What is Gross Income?

Back

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

Front

What are deductions?

Back

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

Front

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

Back

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

Front

How do you calculate Net Income?

Back

Net Income = Gross Income - Total Deductions.

Front

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

Back

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

Front

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

Back

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

Front

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

Back

Gross Income = Net Income + Total Deductions.

Front

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

Back

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

Front

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

Back

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