Question

what income is what you are actually paid after taxes are taken out of your paycheck.

Explanation:

🆕 New Concept Discovered: Gross vs. Net Income
The difference between total earnings and take-home pay.

Step 1: Define Gross Income

Gross income is the total amount of money you earn before any deductions, such as taxes, healthcare premiums, or retirement contributions, are taken out of your paycheck.

Step 2: Define Net Income

Net income (often called "take-home pay") is the actual amount of money you receive in your bank account or on your paycheck. It is calculated by subtracting taxes and other voluntary or involuntary deductions from your gross income:

$$ \text{Net Income} = \text{Gross Income} - \text{Deductions (Taxes, etc.)} $$

Answer:

Net income (or net pay)