What is the difference in Gross income versus Net income?
Gross income usually is the money someone or something has earned before any deductions such as taxes, expenses, or promotion has been deducted. If you are receiving money after such expenses have been deducted, you are receiving money based on NET income.
27 people found this useful
\n. \n Answer \n. \n. \nThe court calculates what the non-custodial parent will pay, based on the adjusted gross income and on the number of children involved. The court first determines the non-custodial parent's gross income, and then makes certain deductions (including Medicare, Social Se…curity, and tax) to establish the non-custodial parent's adjusted gross income.\n. \n . \n Child support laws and guidelines are established by individual states, some base the support on gross income some on disposable income.\n. \nThe percentage also varies widely from state-to-state, in some states there are maximum amounts regardless of how many children are eligible for support, in others the percentage is based on the number of eligible children. (MORE)
Gross income is the total amount of money you earned, before taxes and any benefits are paid for. Net income is the amount of money you actually received on your paycheck after taxes and any benefits you contribute toward are taken out.
Revenue: Is the amount you earn by selling your product or services. Net Income: Is the amount that remains from your revenue after deducting all costs which you have incurred for making that product or providing services. Example: For example, if you go and give tuition to somebody a…nd that person gives you $100 then this is your revenue. But you have to pay taxi fare of $10 to reach the tuition center then this taxi fare is your cost, and you will deduct this cost from your revenue to reach to net income of $90. Net Profit = Revenue - Cost $90 = $100 - $10 Hope this helps! (MORE)
Taxable Income is your adjusted gross income minus your exemptions and either itemized or the standard deduction.. ANSWER: . The Internal Revenue Code defines taxable income as: Gross income minus deductions allowed (other than the standard deduction). In the case of the individual who does no…t elect to itemize his deductions for the taxable year ... the term taxable income means adjusted gross income , minus the standard deduction and the deductions for personal exemptions provided in section 151. The problem with the definition of taxable income given by the Internal Revenue Code is that it leaves more questions than it answers and by defining taxable income as is one must now find the definitions for gross income, adjusted gross income and taxable year. But even before you wade through the Code doing due diligence in learning and knowing the law, there is a fundamental question that remains unanswered by the definition of taxable income and that question is, what exactly is being taxed? What is the subject of the tax? Is it a direct tax or an indirect tax? Is the subject of the tax people, property or activities and where specifically in the Code has a tax been laid upon that subject. . Section 1 of Title 26 of the Unites States Code imposes a tax upon the taxable income of...it then lists certain individuals mostly through marital status to imply that everybody in one way or another is liable to this tax. Implication does not make one liable and if you want to see the Code clearly make someone liable I would direct you to sections 5005, and 5703. Once you read these sections you will see that people involved in a very specific taxed activity have clearly been made liable for an income tax. Why is the Code so clear in these sections and so ambiguous in the rest? This is not your problem or my problem. Our problem is that we can not have anything even remotely related to an intelligent conversation about this "Personal Income Tax Law" until we can know the subject of the tax. (MORE)
Gross and Net Gross refers to the total and Net refers to the part of the total that really matters. Gross vs Net Income In accounting, for a P&L (profit and loss statement, Gross profit , or Gross income , or Gross operating profit is the difference between revenue and the cost of makin…g a product or providing a service, before deducting overheads,payroll, taxation, and interest payments. Net profit is equal to the gross profit minus overheads minus interest payable plus one off items for a given time period. Gross Margin vs Net Margin Gross margin is the ratio of gross profit to revenue. Net margin is the ratio of net profit to revenue. Gross is the profit from the transaction without deduction. Net is the profit from the transaction after deducting cost of goods and cost of the sale (manpower, taxes, rent, etc.) (MORE)
Gross pay is equal to your salary minus any automatic (non-taxable) deductions such as health insurace and 401K deductions. . True Gross pay equals your total salary. . Example: . An employee gets paid $10 per hour and works for 40 hours. They also have insurance and 401K deductions of a total o…f $49.80 automatically deducted. . Gross pay = $ 350.20 (40 x $10.00 - $49.80) . True Gross pay = $400.00 (40 x $10.00) (MORE)
Net Profit and Net Income are interchangeable terms. I think all the taxes are include in Income. and in net profit means no any tax. Ex.,. my income is 100 rs and my net profit is 90..10 rs deduct in tax. I don't agree with you. net income . Definition 1 In business , what… remains after subtracting all the costs (namely, business, depreciation , interest , and taxes ) from a company's revenues . Net income is sometimes called the bottom line . also called earnings or net profit . Definition 2 For an individual , gross income minus taxes, allowances , and deductions . An individual's net income is used to determine how much income tax is owed.. net profit . Definition Often referred to as the bottom line , net profit is calculated by subtracting a company's total expenses from total revenue , thus showing what the company has earned (or lost) in a given period of time (usually one year). also called net income or net earnings .. In an Income statement / Profit or loss account, net profit is calculated after deducting tax (go through any annual report of an organization).. (source: Investorwords.com). (MORE)
Net Sales = total revenue generated by whatever a business does. (eg. selling wigets, renting movies, providing accounting services, etc.). Net Income = the Net Sales minus Interest, Taxes, and Depreciation on whatever assets the company owns. It's the bottom line amount a company takes home "at th…e end of the day." (MORE)
Income is a general term referring to one's financial gain, whether earned or unearned, received as wages, or for services, from the sale of goods or property, or as earnings on investments over a given period of time.. Gross income is the total income earned from all sources (e.g. wages, property)… in a given period before expenses or taxes are deducted.. Net income is the income or profit remaining after taxes and expenses have been deducted. (MORE)
Net income is the total revenue in an accounting period minus all expenses during the same period. If income taxes and interest are not deducted, it is called net profit or operating profit (or Loss, as the case may be). Also called earnings or net earnings. See link below for more details.
The difference between gross pay and net pay is that gross pay is the amount that you receive before tax deductions and pay net is the money you take home after all the tax deductions
There are several variables which will affect the answer such as the number of exemptions you claim, the state income tax rate, other state taxes such as unemployment and disability, contributions to health insurance or retirement plans, union dues, etc. However, 70% - 75% or 252 - 270 is a rough es…timate for a single person person with one exemptions. (MORE)
Adjusted gross income is the number on the last line of the first page of Form 1040. The tax law has many different definitions of modified adjusted gross income in many different contexts. For example, there are different definitions of MAGI for determining whether you can deduct a traditional I…RA contribution than for determining whether you can contribute to a Roth IRA. There is a different definition for figuring the first-time homebuyer's credit. There are dozens of definitions in different contexts. (MORE)
Gross total income is the total income for the country divided by the amount of people therefore you get what each person in the country would get.
For companies with no debt and thus no interest expense, NOPAT is equal to http://www.answers.com/topic/net-profit-1 . In other words, NOPAT represents the company's operating profit that would accrue to shareholders (after taxes) if the company had no debt. See also http://www.answers.com/topi…c/nopat (MORE)
Gross Income- The Internal Revenue Code defines gross income as "except as otherwise provided..., all income from whatever source derived." The "except as otherwise provided" refers to exclusions. Adjusted Gross Income (AGI)- is an important subtotal that serves as the basis for computing percentag…e limitations on certain itemized deductions, such as medical expenses, charitable contributions, and certain casualty losses. (MORE)
Your annual income is generally your net income - what you earned (gross income) minus the taxes and pre-tax benefits you pay for prior to getting your paycheck (deductions).
To answer the question we should first define the point of view, which is determined by the purpose who or why do we want to make this differentiation. If we see it from the point of cost calculation in a company during head count budgeting or negotiation of the salary of a new hire or to determine …your annual fiscal burden and where applicable any tax credits and other government grants, usually the gross income figure is used. If the purpose of stating the personal income is for credit rating, applying for a mortgage or loans, then only the disposable income matters, which is your take home pay. However there is still a difference to net pay, since the net pay is your gross income including payments inking less tax and other deductibles, which is not necessary your net cash in the pocket, as payment in kind are valuated in whatever currency, but obviously not paid out in cash. (MORE)
It means your gross income minus the net tax deductions, the tax deductions as federal income taxes, state taxes, Fica, medicare, SUI/SDI. Other taxes are not included, such as, life insurance, charity, or debts that are taken automatic from your paycheck.
Gross income on the 1040 income tax return is the total amounts of all of your worldwide taxable income added together that is on page 1 line 22 Total Income of the 1040 tax form. From the line 22 total taxable income you can have some amounts from line 23 through line 35 that can be used to reduc…e the gross taxable amount from the line 22 Total Income. The total amount of the adjustments form page 1 line 36 will be subtracted from the amount on line 22 Total Income and the reaming amount will be your adjusted gross income on line 37 and then that amount (AGI) will go to page 2 of the 1040 tax form line 38 for your AGI amount. (MORE)
Revenue is all the money a business brings in. Net income isrevenue minus all the expenses of the business. Net income isprofit.
Gross profit on sales is derived by just deducting the direct coststo manufacture and sale the product while net operating profit isderived after deducting all other indirect business cost to findout the final profit earned.
Jones bought an income property for which $47,000.00 was deducted from gross income for operating expenses. If the operating expenses are 30% of gross income, the value of the property using a cap rate of 12.5%?
Gross income is the difference between revenue and direct expenseswhile net income is the income from all activities of businesswhether oprating activities or other activities.
Gross income is the sum of income from all of the revenue generating activities. This does not include any deductions. Taxable income is the gross income and all of the deductions. Taxable income is always lower than gross income because all of the deductions are included. .
You should get this information from your employer payroll department as they will be the one that would know how much FICA, federal income tax, state income, local taxes, etc they will have to withhold from your hourly pay or gross pay for the pay period.
Retirement benefit calculations are based on your average earnings during a lifetime of work under the Social Security system. For most current and future retirees, we will average your 35 highest years of earnings. Years in which you have low earnings or no earnings may be counted to bring the tota…l years of earnings up to 35. The number of work credits you need to get retirement benefits depends on your date of birth. If you were born in 1929 or later, you need 40 credits (10 years of work). People born before 1929 need fewer than 40 credits (39 credits if born in 1928; 38 credits if born in 1927; etc.) Go to the SSA gov web site and use the search box for Frequently asked retirement questions Click on the below Related Link (MORE)
Net operating income is income which is earned from basic operatingactivity of business while net income is included income from otheractivities as well.
Net operating income (must be a positive number, otherwise would be net operating loss) is the amount after expenses have been deducted out of sales, BUT before INTEREST and INCOME TAXES have been deducted (also called EBIT: Earning before Interest and Taxes). Therefore, the difference is that Net o…perating income includes interest and income tax expenses, where as Net Income does not include it. Sales (-)CGS Gross profit (-)Operating expenses/depreciation Net operating Income (EBIT) (-)Interest and income taxes Net Income (MORE)
Net Operating Income Approach Net Operating Income Approach was also suggested by Durand. This approach is of the opposite view of Net Income approach. This approach suggests that the capital structure decision of a firm is irrelevant and that any change in the leverage or debt will not resul…t in a change in the total value of the firm as well as the market price of its shares. This approach also says that the overall cost of capital is independent of the degree of leverage. Features of NOI approach: . At all degrees of leverage (debt), the overall capitalization rate would remain constant. For a given level of Earnings before Interest and Taxes (EBIT), the value of a firm would be equal to EBIT/overall capitalization rate. . The value of equity of a firm can be determined by subtracting the value of debt from the total value of the firm. This can be denoted as follows: Value of Equity = Total value of the firm - Value of debt . Cost of equity increases with every increase in debt and the weighted average cost of capital (WACC) remains constant. When the debt content in the capital structure increases, it increases the risk of the firm as well as its shareholders. To compensate for the higher risk involved in investing in highly levered company, equity holders naturally expect higher returns which in turn increases the cost of equity capital. Example: Let us assume that a firm has an EBIT level of $50,000, cost of debt 10%, the total value of debt $200,000 and the WACC is 12.5%. Let us find out the total value of the firm and the cost of equity capital (the equity capitalization rate). Solution: EBIT = $50,000 WACC (overall capitalization rate) = 12.5% Therefore, total market value of the firm = EBIT/Ko â $50,000/12.5% â $400,000 Total value of debt =$200,000 Therefore, total value of equity = Total market value - Value of debt â $400,000 - $200,000 â $200,000 Cost of equity capital = Earnings available to equity holders/Total market value of equity shares Earnings available to equity holders = EBIT - Interest on debt â $50,000 - (10% on $200,000) â $30,000 Therefore, cost of equity capital = $30,000/$200,000 â 15% Verification of WACC: 10% x ($200,000/$400,000) + 15% x ($200,000/$400,000) â 12.5% Net Income (NI) Approach Net Income theory was introduced by David Durand. According to this approach, the capital structure decision is relevant to the valuation of the firm. This means that a change in the financial leverage will automatically lead to a corresponding change in the overall cost of capital as well as the total value of the firm. According to NI approach, if the financial leverage increases, the weighted average cost of capital decreases and the value of the firm and the market price of the equity shares increases. Similarly, if the financial leverage decreases, the weighted average cost of capital increases and the value of the firm and the market price of the equity shares decreases. Assumptions of NI approach: . There are no taxes . The cost of debt is less than the cost of equity. . The use of debt does not change the risk perception of the investors Example A company expects its annual EBIT to be $50,000. The company has $200,000 in 10% bonds and the cost of equity is 12.5(ke)%. Calculation of the Value of the firm: Effect of change in the capital structure: (Increase in debt capital) Let us assume that the firm decides to retire $100,000 worth of equity by using the proceeds of new debt issue worth the same amount. The cost of debt and equity would remain the same as per the assumptions of the NI approach. This is because one of the assumptions is that the use of debt does not change the risk perception of the investors. Calculation of new value of the Firm Please note: Overall cost of capital can also be calculated by using the weights of debt and equity contents with the respective cost of capitals. This proves that the use of additional financial leverage (debt) causes the value of the firm to increase and the overall cost of capital to decrease (MORE)
Gross income is the raw income earned whilenet income is after deductions of interest taxes while taxableincome is that income on which tax is calculated.
No. Gross will be what you make prior to any overhead expenses. For instance: You make a product using labor and material. Sales price less labor and material costs give you a gross profit. From gross profit your overhead and taxes will be paid leaving you with a net profit. Net is always what is le…ft over after everything has been paid. (MORE)
Net ordinary income includes from basic operating activity as wellas other incomes whils net operating income includes income onlygenerated from basic business operating activity.
Gross income. But for personal reference, basing it on net income could give yourself a clearer picture. For e.g. Income after deducting tax.
Gross income. It doesn't make sense if it is based on a net income (adjusted for expenses) since it measures how much of debt is paid out of your income.
Gross pay is the number of hours times base hourly rate. Net is what is left after Insurance, FICA, Fed and State deductions. In other words, Gross is what you make, Net, is what you spend.
God gave very clear instructions in His Word how to figure His tithe. Leviticus 27:30-33, Numbers 18: The First Tithe - a tenth of crops and animals and commanded to take the tithe to the Levites. Deuteronomy 14:22-27: The Second Tithe aka The Festival Tithe - a tenth of crops, plus add to tha…t the firstborn animals, and take for the yearly feast. Deuteronomy 14:28-29: The Third Tithe aka The Three-Year Tithe aka The Poor Tithe - a tenth of crops, kept at home, and invite the Levites, widows, orphans, stranger to eat. IF God wanted Christians to tithe on their income, He would have said so, and would have given specific instructions. God would not tell us to do something but not tell us how to do it. (MORE)
Gross is how much you make all together, and net income is how much you make after taxes and stuff
Gross income in normally higher then net income unless there isother income then normal business operations then net income may behigher then gross income.
Gross profit is the total money you made. Net income is what is left of that money after you pay all your expenses: Heat, light, employee salaries, insurance, etc.
Yes, gross profit minus expenses equal to net income as provedby following: . Sales xxxx . less: . Cost of sales xxxx . Gross profit xxxx . Less: . Admin & Selling expenses xxxx . Other expenses xxxx . Net Income xxxx
i don't now u ask some one with brains for all i care p.s. i like pie
Gross income: the overall income, from which expenses and tax are not yet deducted. Net income: the pure income, left after deducting all expenses and tax. Taxable income: the income before tax, deducted all expenses except tax.
Net Income would be after deductions (Taxes on Earnings/ Levies / Contributions- UIF etc) and would be the actual amount payed to the typical worker. Gross Income would be before these deductions and would be the advertised wage.
Most of your income is taxable on the gross income level. Some items are excluded from taxable gross income (such as pretax deductions from your paycheck for child care or medical expenses). Wage earners will enter the income in box 1 of their Form W-2 which is their taxable gross income. Other t…ypes of income are taxable at the net income level. If you have your own business, you can deduct business expenses from your gross income before adding the net income to your tax return. If you own a partnership, business expenses are deducted from gross income. (MORE)
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.
Normally gross income is higher than net income as gross incomeonly includes direct expenses for manufacturing of goods while innet income other administrative expenses are also deducted but eventhen net income may be high if company has other income which isnot related to specific business related …activities and this incomeis also have very significant amount otherwise gross income isnormally more than net income. (MORE)
Most probably, yes. Gross Profit is the gain made solely from trading activities: the difference between the revenue received from sales and how much their cost of purchase/production was. Net Profit, however, will take into account other incomes (such as rent from sub-let premises, profit from disp…osal and decrease in provision for doubtful debts) and expenses (both cash and non-cash such as rent and depreciation, respectively). Now, it is possible that these other sources of income are more than the expenses incurred in the running of the business, which will lead to net profit being higher than gross profit but it is most unlikely as nearly all, if not all, businesses' expenses exceed other sources of income! (MORE)
Lots of different Christian denominations (as well as non-Christians) have some sort of tithes; the details vary from one church to another.
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..