Gross vs Net Income: What's the Difference?
The video defines gross as what you earn before anything is taken out, and US tax law defines it as all income from whatever source derived (26 U.S.C.
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1.What is gross income?
The video defines gross as what you earn before anything is taken out, and US tax law defines it as all income from whatever source derived (26 U.S.C. 61).
2.Which are the three main groups of deductions mentioned in the video?
The video says most deductions fall into income tax, social insurance and other items such as a workplace pension or union dues.
3.What is withholding?
The video says in many countries your employer takes it out of your pay and passes it on, which is called withholding.
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Sources (3)
- 26 U.S. Code Section 61 - Gross income defined (Cornell LII, Gesetzestext)
- IRS Tax Topic 751: Social Security and Medicare withholding rates
- Eigene Berechnung (synthetisches Modellland, Python)
Education only. Not financial advice.