Gross Income vs. Net Income

The total amount of personal income prior to taxes and deductions is called

• Gross income

• Net income

The income that remains after taxes have been deducted is called

• gross income

• net income

Tags

CCSS.L.2.4E

CCSS.L.3.4D

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

Mrs. Smith's gross income was $2,500, however she was only able to take home $2,150 (net income). Why was there a difference in what she earned versus what she took home?

• There was a difference in the amounts because she was late to work.

• There was a difference in the amounts because some of the money went to a savings account.

• There was a difference in the amounts because she had deductions taken out from the gross income.

Tags

CCSS.6.NS.B.3

Brandon was offered a job with a salary of $400 a week. When he received his first paycheck, the amount was $312. Based on this information, which statement might explain the reason for the difference between his $400 salary and his $312 paycheck?

• His gross income was $312, but his net income was $400 because taxes were deducted.

• His gross income was $400, but his net income was $312 because taxes were deducted.

• His gross income was $312 because he took a few days off.

• His gross income was $400, but he only received $312 after his rent was deducted.

Tags

CCSS.7.NS.A.1B

Chase had his first job at a grocery store. He was able to work for 10 hours at a rate of $10 per hour and make $100 for the week. His paycheck was for the amount of $85. Which of the following describes this amount ($85)?

• $85 is his gross income

• $85 is his deductions

• $85 is his net income

• None of the above

Tags

CCSS.6.RP.A.3B

Aria's teacher asked her to explain the difference between gross income and net income. Which of the following statements is the BEST explanation?

• Gross income is the amount of money a person makes before deductions (payroll tax), and net income is the "take home" amount after deductions have been taken out.

• Net income is the amount of money a person makes before deductions (payroll tax), and gross income is the "take home" amount after deductions have been taken out.

• There is no difference between gross income and net income.

Tags

CCSS.7.RP.A.2

CCSS.7.RP.A.3