Understanding Deductions Worksheet
A worksheet for 7th graders to practice understanding different types of deductions from gross income and their impact on net income.
Includes
Standards
Understanding Deductions
Name:
Date:
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Read each question carefully and answer to the best of your ability. Show your work where necessary.
1. The total amount of money earned before any deductions is called income.
2. Money taken out of your paycheck for taxes, insurance, or other reasons are called .
3. The amount of money you take home after all deductions is your income.
1. Which of the following is NOT typically considered a deduction from a paycheck?
Federal Income Tax
Health Insurance Premium
Salary
Social Security Tax
2. If your gross pay is $500 and your total deductions are $100, what is your net pay?
$600
$500
$400
$100
1. Sarah earns a gross weekly pay of $450. Her deductions are $60 for federal taxes, $25 for state taxes, and $15 for health insurance. Calculate her net weekly pay.
2. Why are deductions important for both employees and the government?
1. Gross pay is always less than net pay.
True
False
2. Taxes are a type of deduction.
True
False