Question

which describes an individual’s net income? (1 point) all wages minus all taxes and deductions all wages, salaries, and other earnings all salaries all wages and other earnings minus fica

Explanation:

To determine the correct description of an individual's net income, we analyze each option:

• Option 1: Net income is calculated by subtracting all taxes (e.g., income tax, FICA) and other deductions (e.g., health insurance premiums, retirement contributions) from total wages. This matches the definition of net income.
• Option 2: "All wages, salaries, and other earnings" describes gross income, not net income, as it does not account for deductions.
• Option 3: "All salaries" is too narrow and does not represent net income, as it ignores wages from other sources and deductions.
• Option 4: Net income involves more than just subtracting FICA; it includes all taxes and deductions, so this option is incorrect.

Answer:

A. all wages minus all taxes and deductions