Difference In Gross, Net, and Taxable Income (Must Learn!)

It is really important to know the difference between gross income, net income, and taxable income. Understanding the difference between these three classifications can allow you to minimize your tax bill and maximize your take-home pay.

************************************************************
All Of My Favorite Financial Resources:

How I Track My Personal Finances:

Investment Platform That I Use:

My Favorite Calculator For Financial Independence:

Software I Use To File My Taxes:

Products I Buy To Save Money:

Get Personalized Consulting From Me:

************************************************************
#grossincome #netincome #taxableincome

************************************************************
This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Before making financial and legal decisions, consult financial and legal professionals licensed in your jurisdiction. Some links provided may be part of an affiliate advertising program designed to provide a means of compensation for referring traffic and business to other companies.

[OnCashFlow]

To make tax time easier, I HIGHLY recommend you track your income for FREE using Personal Capital:

[idepaula]

Thank you for the explanation, that was very informative. I'm confused on W-2's Box 1 is that Amount & gross Earnings or Net Earnings?
Thanks

[Nyorane]

You made this super simple, thank you!

[brendan]

Filing a tax return for my Federal Taxation class as we speak. Thanks!

[neosoul]

Great video...especially the part on taxable income. That is always a fuzzy one for me. Maybe one day, you might have the time, to do a more in depth video on just that topic. Thank you, as always Zach, for all you do, for our financial health!🙂

[brandonbernard]

Question re 'Net Income' for budgeting purposes: It is so often called 'take-home pay' and I hear it explained as the amount "after everything else is taken out of your check." Yes, indeed there are deductions that come out of the check on my paystub, showing what has been substracted from my gross. HOWEVER, what about other IRAs I pay into, life insurances I pay premiums on, etc that ARE NOT CONNECTED with my employment that are paid for using my paycheck?? In my personal budget, should I ALSO subtract these others to arrive at my actual net??

[deontaytaylor]

How can I locate the AGI information with out the paper work ?

[KEVINSURIEL]

Do you deduct gross income minus taxed income to get the companies net profit.

[faquino]

if i had a taxable income of $0 (after FEIE) but i sell stock (ISO), would i still have to pay capital gains?

[deegrant]

Adjustable gross income is the income you receive after all federal and state taxes, thrift savings plan and insurances. Does this matter if i get extra money for housing? I'm so confused.

[AB-kcee]

If I made unemployment $14200 last year, so my taxable income is $14200~10200=$4000, right??

[AB-kcee]

If I made unemployment $14200 last year, my taxable income is $14200-10200=$4000, right??

[travisg]

If you make less than 75 percent of people in your city, taxes are the least of your worries, you worry more about survival. I think anyone who make less than 25k a year should not think about taxes.