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.
Continue Reading
Credit:
401kcalculator.org
CC-BY-SA 2.0
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.
Learn more about Financial CalculationsRelated Questions
-
Q:
What Is the Difference Between Gross and Net Income?
A: The difference between gross and net income is that gross income is the total amount of income made and net income is the total amount of income made after... Full Answer >Filed Under: -
Q:
How Do You Define Gross Income?
A: In the simplest terms, gross income refers to all income received by a person or corporation in a set period of time; for individuals, this includes paymen... Full Answer >Filed Under: -
Q:
How Much Tax Does a Married Couple Owe on $40,000 Adjusted Gross Income in 2013?
A: A married couple with an adjusted gross income in 2013 of $40,000 pays $5,107.50 in income taxes, factoring in a 10 percent rate on the first $17,850 and 1... Full Answer >Filed Under: -
Q:
How Does Someone Gross up an Amount?
A: To "gross up" an amount, a person will need to find all of their deductions and add those deductions to the person's salary in order to determine their ind... Full Answer >Filed Under:
You May Also Like
-
Q:
How Do You Track Payments Received?
-
Q:
How Do You Balance Your Checkbook With a Bank Statement?
-
Q:
Where Can You Get Help With Your Taxes If You Are Unemployed?
-
Q:
What Is the Point of Diminishing Returns?
-
Q:
Is Income Tax Calculated in the Same Way for Every Country?
-
Q:
Do Condo Fees Include Property Taxes?
