Gross Income vs Net Income

What are 4 types of taxes?

• sales tax, property tax, payroll tax, and income tax

• personal tax, home tax, payroll tax, and sales tax

The following are true about gross income and net income.

• Net income usually ends up being more than gross income.

• People pay income tax on their gross income.

• Net income is calculated by subtracting deductions from gross income.

• Gross income is the amount that a person will take home and can be used for budgeting.

Tags

CCSS.7.RP.A.3

Gross income is amount of money you earn before taxes?

• True

• False

How much is Sam's gross income for the week, if he makes $10.00 per hour and works 40 hours in 1 week?

Tags

CCSS.7.EE.B.3

Does Sam bring home $400 a week?

• Yes

• No

Tags

CCSS.3.OA.A.3

If Sam pays $80 in income tax, $40 in Social Security tax, and $20 for healthcare insurance, what is the total of his deductions so far?

• $150

• $135

• $140

• $145

Tags

CCSS.6.NS.B.3

If Sam's gross income is $400 and his deductions equal $140, what will his net income equal?

Tags

CCSS.7.EE.B.3

True or False: Gross income is what you earn and Net income is what you actually take home in your paycheck after all deductions are taken out. 

• True

• False