Question

Are earnings gross or net?

Answer 1

Answer:

For the year you are filing, earned income includes all income from employment, but only if it is includable in gross income. Examples of earned income are: wages; salaries; tips; and other taxable employee compensation. Earned income also includes net earnings from self-employment.

Answer 2

Gross income is the total amount you earn and net income is your actual business profit after expenses and allowable deductions are taken out.