Gross and Net Income

Front

What is gross income?

Back

The total amount of money you earn before any deductions.

Front

What is net income?

Back

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

Front

What are deductions?

Back

Amounts that are subtracted from your gross income, such as taxes and insurance.

Front

What is gross earnings?

Back

The total amount of wages on your paycheck before any deductions.

Front

If your gross income is $500 and your deductions are $100, what is your net income?

Back

$400

Front

What does gross income include?

Back

All sources of income before any deductions, including wages, bonuses, and interest.

Front

How do you calculate net income?

Back

Net income = Gross income - Deductions.

Front

What is an example of a deduction?

Back

Payroll taxes, health insurance premiums, and retirement contributions.

Front

If Amorelle made $384 in gross income and her deductions are $122, what is her net income?

Back

$262

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.