What is Total Gross Annual Income?

tax returns

Feeling confused as to what is total gross annual income? You’re not alone. We get questions about this topic frequently at Xpress Cash, and the answer is pretty simple! Total gross annual income is the total amount of money an individual earns from all sources in a one-year period before taxes. When you’re filing your tax return or applying for a loan or credit card, you’ll need to provide your annual income. Find out how to accurately calculate your annual income with the team at Xpress Cash, below!

What is My Total Annual Gross Income?

Finding the answer to what is my total annual gross income can be done by performing one of four simple calculations. Here’s how.

Assuming you work an average of 40 hours per week and 50 weeks per year, you could use any one of the following formulas to find your annual income:

  • Your hourly rate x 2,000
  • Your daily rate x 250
  • Your weekly rate x 50
  • Your monthly rate x 12

As an example, let’s say you earn $30 per hour at your job. If you were to calculate your hourly rate of $30 x 2,000 using the first formula above, you would find that your annual income before taxes is $60,000.

What is Included in Annual Income?

In addition to asking what is total annual gross income, you may also be wondering what exactly is included in your annual income. In addition to the money earned at your regular job, your annual income might include multiple other factors, including:

  • Overtime payments, commissions earned, and tips or bonuses received at work before tax deductions
  • Social Security, retirement funds, or pensions
  • Court-ordered alimony or child support payments
  • Interest, dividends, and other net income from income-earning properties you may own (rentals, etc.)
  • Welfare or disability assistance
  • Net income earned from owning a business or working a second job

Learn More From the Team at Xpress Cash!

If you still have some remaining questions about what is total annual gross income, don’t hesitate to get in touch with the friendly professionals at Xpress Cash. Our team is always available to provide advice you can trust – contact us online or stop in at one of our multiple Michigan locations today to speak with us!