Q:
Is a Gross Income an Income Before or After Taxes?
A:
Quick Answer
Gross income is the income of an individual or business before payroll taxes are deducted. A typical employer deducts an employee's federal, state and local tax amounts from gross income, which leaves net income as the take-home pay amount.
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Full Answer
In addition to conventional payroll checks, a person may generate gross income through rental properties, self-employment and investments, according to About. In these cases, the person is responsible for making estimated tax payments to the IRS. Some pretax income disbursements are allowed, which minimize an employee's tax burden on gross income. Many employees have pretax health insurance and retirement contributions held, for instance.
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What Is the Difference Between Gross and Net Income?
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How Much Tax Does a Married Couple Owe on $40,000 Adjusted Gross Income in 2013?
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How Does Someone Gross up an Amount?
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