![]() ![]() To calculate it, begin with your gross income or the amount you earn from all taxable wages, tips and any income you make from investments, like interest and dividends. What Is Net Income?Įssentially, net income is your gross income minus taxes and other paycheck deductions. And if you’re an hourly worker, your annual gross income would be what you earn per hour multiplied by the number of hours you work every year. If you’re an independent contractor or freelancer, your annual gross income would be everything you’re paid for the work you complete for clients over the course of 12 months. ![]() For example, Mary is a teacher and her salary is $40,000 per year. However, if you simply work one job and receive an annual salary from your employer, your gross income would equal your total annual salary before any taxes or benefits are taken from your paycheck. It also includes other forms of income, including alimony, rental income, pension plans, interest and dividends. ![]() Your gross income includes more than just your wages or salary. ![]()
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