Definition of Annual Income

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Definitions of Debt Consolidation and Finance Words and Phrases:


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Annual Income definition

Define Annual Income: Your income is simply wealth that is generated in exchange for work or through investing capital. A person's annual income is their combined (or aggregate) income over a one year period, typically beginning on January 1st. For example, if a person's bi-weekly paycheck is $2,250, their annual income would be $58,500.


There is a difference between gross annual income and net annual income. Gross annual income is the full amount, before any deductions, that one earns in a given year. Net annual income is the gross annual income less amounts which unavoidably are deducted from the paycheck before it is received. Examples are income taxes and wage garnishments.



Glossary of Debt Consolidation and Finance Terms
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