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Which describes an individual's net income? (1 point)

O all salaries
O all wages, salaries, and other earnings
O all wages and other earnings minus FICA
O all wages minus all taxes and deductions

User Dilshan
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2 Answers

23 votes
23 votes

Final answer:

Net income is the amount an individual takes home after all taxes and deductions are subtracted from their wages and other earnings.

Step-by-step explanation:

An individual's net income is described as all wages minus all taxes and deductions. This includes taxes such as federal income tax, state income tax if applicable, and payroll taxes like Social Security and Medicare (FICA). Other deductions might include retirement contributions, health insurance premiums, and various other benefits costs.

The key concept is that net income represents the amount of money that an individual actually takes home after all deductions.

User Saritha
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3.2k points
19 votes
19 votes

Answer:

1. take-home pay

2. an IRS form used to determine how much federal tax to withhold

3. all wages minus all taxes and deductions

4. -retirement plan contribution

-health insurance

5. all wages, payments, and other earnings

Explanation: Took the test

User Xeye
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2.9k points