104Course · Foundation

Income

Wages, self-employment, and the arithmetic of earning.

The Course

Income is the top line of the household — the number every other number depends on. But few households can state their own income accurately across gross, taxable, and take-home, or explain what happens to the difference. This course closes that gap.

You will read your own pay stub line by line, understand the arithmetic of self-employment and partnership income, and produce a model of what an additional hour of work is actually worth to you after tax and opportunity cost.

Outcomes
  • 01

    Distinguish gross, taxable, and take-home income.

  • 02

    Read a pay stub and a 1099.

  • 03

    Model the marginal value of an additional working hour.

Prerequisites
  • Course 102 — Personal Finance.
Pacing

1 week · ~3 hours.

  • IModule · ~1 hour.

    How you get paid

    The instruments of earning, from W-2 to K-1.

    The instruments of earning — W-2, 1099, K-1 — have different arithmetic and different risks. Understanding the differences shapes the career.

    What You Will Be Able To Do
    • Distinguish W-2, 1099, and K-1 income at the tax and cash-flow level.
    • Explain what an employer pays that never appears on your stub.
    • Recognize when the same work is better structured under a different instrument.
    Why here

    Households treating all income as identical make identical mistakes across all three regimes.

    1. 01Employment incomeArticle12m
    2. 02Self-employment and 1099Article12m
    3. 03Partnership and pass-throughArticle12m
  • IIModule · ~1 hour.

    The pay stub

    The document, line by line.

    The pay stub is a legal document most workers glance at once and never again. This module dissects it line by line.

    What You Will Be Able To Do
    • Read every line of your own stub and account for it.
    • Compute gross-to-net under three different tax regimes.
    • Catch the two errors that most commonly appear on stubs.
    Why here

    The document you get twice a month deserves to be understood once, for good.

    1. 01Anatomy of a pay stubVisuals8m
    2. 02Gross to netInteractive20m
  • IIIModule · ~1 hour.

    Increasing income

    The disciplined path to a raise.

    Raising income is a discipline, not luck. This module treats it as one — with market rate, negotiation, and second-income arithmetic.

    What You Will Be Able To Do
    • Estimate the market rate for your work defensibly.
    • Decide whether a second engagement is net positive after taxes and time.
    • Draft a written income architecture for the next three years.
    Why here

    Compounding starts with a bigger top line. This module gives Scholars the arithmetic to justify the ask.

    1. 01The market rate for your workArticle12m
    2. 02Second jobs and side incomeArticle12m
    3. 03Reflection: Your income architectureReflection15m
A Note from the Faculty

Most negotiation and career advice fails because the person receiving it does not know what an incremental dollar is worth to them. Fix that first.