Income: is the money you receive in exchange for providing labor, producing a good or offering a service, and is paid by an employer.

Income Tax: refers to the various taxes that are withheld from your paycheck. This can include income tax at the local, state, and federal levels, as well as withholdings for Social Security and Medicare benefits.

Local Income Tax: is a tax set by the local government, and are not found everywhere.

State Income Tax: is a tax set by the state government, and can be found in most states, though each state has its own rate.

Federal Income Tax: is a tax set by the federal government, and utilizes a bracket structure, which is the same for all citizens.

Social Security Withholdings: are a percentage of your income (6.2% of the first $160,200 in income) which is withheld to support Social Security.

Medicare Withholdings: are a percentage of your income (1.45%) which is withheld to support Medicare Services. (For those making over $200,000 per year, an additional 0.9% is withheld for all income over $200,000.)

Net Income: is your wage after taxes and other deductions have been taken out. It is the money you "take home".

Gross Income: is your wage before taxes and other deductions have been taken out.