Understanding Deductions
A Grade 6 math worksheet focusing on understanding and calculating various types of deductions from gross income.
Includes
Standards
Understanding Deductions
Name:
Date:
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Read each question carefully and answer to the best of your ability. Show all your work for calculation problems.
What are Deductions?
Deductions are amounts of money subtracted from your gross income (your total earnings before any subtractions) to arrive at your net income (the amount you actually take home). Common deductions include taxes (federal, state, local), social security, and health insurance.
1. The total amount of money you earn before any deductions is called your income.
2. After deductions are subtracted, the money you actually receive is called your income.
3. are amounts of money taken out of your paycheck.
4. Which of the following is NOT typically considered a deduction from a paycheck?
Federal Taxes
Health Insurance
Bonus Payment
Social Security
5. Sarah earned $500 this week. Her deductions were $50 for federal taxes, $25 for state taxes, and $15 for health insurance. What is Sarah's net income for the week?
6. Mark's gross income for the month was $1200. If his total deductions amounted to $250, what was his net income?
7. Gross income is always less than net income.
True
False
8. Taxes are a type of deduction.
True
False