What’s the difference between gross vs. net income?

Gross income is the total of all your income while net income is what you’re left with after all the deductions are taken out. These deductions include:Income and Social Security taxHealth insurance and health savings account (has) contributionsIRA, 401(k) or retirement fund contributionsAny necessary legal payments, like alimony.A simple mnemonic device can help: net income is what’s in your “net.” It’s what you take home with you, which is also why it’s sometimes called “take home pay.”

Where does gross income come from?

Gross income can come from many different sources, not just employment. Gross income includes what you make from interest, dividends from stocks or bonds, pensions, rental income, gambling winnings, inheritances and more.

What’s included in gross income?

Gross income is everything you earn before payroll deductions. Your gross income should never exceed your adjusted gross income, which subtracts out the tax deductions, or “tax breaks,” you qualify for.

Gross Income and Getting a Mortgage