Q: How is gross income different from net income?

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In general, net income is gross minus tax/FICA/Medicare withholding, unusual work expenses such as uniforms, health/dental insurance, and current support for other children as ordered and paid.

--> another term for Statement of Earnings is Income Statement --> in income statement, you deduct the Sales Return & Allowances from the Gross Sales to come up with Net Sales --> in presentation purposes, usually it is only the Net Sales account that is shown

Net pay = gross pay - deductions. Or in percentages: Net pay = gross pay x (1 - percentage of deductions / 100) If you have any two of these, you can solve the third. For example, in the last formula: gross pay = net pay / (1 - percentage of deductions / 100)

The gross price is the basic price. Adjust for any discuont, add any relevant taxes and you get the net price.

Gross is what is made prior to all tax deductions. Net pay is the actual amount made. For instance if your check before taxes is $500 that is your gross pay. If after taxes it is $409 that is your net pay. The same can be applied to volume.

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Gross income in normally higher then net income unless there is other income then normal business operations then net income may be higher then gross income.

Net Income = Sales - Gross profit Gross Profit - Cost of Production = Net Income

Gross margin is Gross income as a percentage of revenue. Net Margin is net income as a percentage of revenue.

Gross income is generally your total income. Net income is what you actually end up with to pay your bills. Gross income minus taxes & other deductions (such as disability insurance) equals net income.

That would do it for me, but unfortunately for me my net income is equal to my gross income minus taxes.

gross

Gross.

You pay tax on your adjusted gross income. This is not quite the same thing as gross income, but it's definitely not net either.

gross income

Gross.

Net Income is after taxes.

Net income is what you get after tax, gross income is before tax.