Gross vs. Net Income

Front

What is Gross Income?

Back

The total amount of money you earn before taxes are deducted.

Front

What is Net Income?

Back

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

Tags

CCSS.7.RP.A.3

Front

If Angel's gross income is $105 and his tax deductions are $12, what is his net income?

Back

$93

Tags

CCSS.7.NS.A.1C

Front

Why was Pedro's paycheck less than what the manager told him?

Back

Taxes were deducted.

Tags

CCSS.6.NS.B.3

Front

How do you calculate Gross Pay?

Back

Multiply the number of hours worked by the hourly rate.

Tags

CCSS.7.EE.B.3

Front

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

Back

$288

Tags

CCSS.7.EE.B.3

Front

What does it mean to have enough net income?

Back

It means you have enough money left after deductions to cover your expenses.

Tags

CCSS.7.RP.A.3

Front

What are tax deductions?

Back

Amounts taken away from your gross income for taxes.

Front

If a jersey costs $84 and you have a net income of $93, can you buy the jersey?

Back

Yes, you can buy the jersey.

Tags

CCSS.6.RP.A.3B

Front

What is the difference between gross income and net income?

Back

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