Question

Question
What is the difference between gross income and net income? Select the best answer.(1 point)
Responses

Gross income is the total of annual salary minus federal income tax.
Gross income is the total of annual salary minus federal income tax.

All wages and other earnings minus mandatory deductions
All wages and other earnings minus mandatory deductions

Net income is wages, salaries and other earnings minus all tax and deductions
Net income is wages, salaries and other earnings minus all tax and deductions

Wages minus voluntary deductions

Answer 1

The best answer is:

**Net income is wages, salaries and other earnings minus all tax and deductions.**

Gross income refers to the total earnings before any deductions, while net income is what you actually take home after all taxes and other deductions have been subtracted.