Gross and Net Income

A deduction is

• gross income

• money added to your income

• net income

• money taken out of your income

Gross income is:

• the total amount of money you earn

• the amount of money you receive after decuctions are subtracted

• the total amount of money you spend

• sales taxes on items you buy

Net income is:

• the total amount of money you earn

• the amount of money you receive after deductions are subtracted from your gross income

• the amount of money that is taken away in the form of taxes

• the hourly rate of pay

Jill works as a chef in a state that does not have a state income tax. Look at Jill's pay stub for the pay period January 1 to January 15. What was Jill's net income?

Gabriel builds airplanes for an engineering company. He lives in a state that has a state income tax. Look at Gabriel's pay stub for the pay period June 16 to June 30. What was Gabriel's net income?

Sometimes called "take-home" pay

• Gross

• Net

A new employee received their first paycheck. They noticed that they were paid $4,567 for the month but after taxes and insurance they took home $2,899. Which of the following is true?

• The $4,567 represents the employees net income.

• The $4,567 represents the employees taxes and insurance payments.

• The $2,899 represents the employees net income.

• The $2,899 represents the employees gross income.

Hank has an hourly rate of $11. He works 26 hours. His deductions are $74. What is his gross income?

• $286

  
  

• $300

  
  

• $275

  
  

• $212

  
  

Hank has an hourly rate of $13. He works 22 hours. His deductions are $85. What is his net income?

• $286

  
  

• $212

  
  

• $371

  
  

• 201

Tyrone works 20 hours a week at Sonic. He earns $9 an hour. Which statement is true?

• His net income is more than $180.

  
  

• His net income is less than $180.

  
  

• His gross income is less than $180.

  
  

• His gross income is more than $180.