Salary vs Commission/Bonus Tax (2024)

commissions and salary are all the same thing: they are earned income from the viewpoint of the IRS, so they are all taxed the same.

However, and this is just a timing difference, the federal withholdings for salaries and bonus come off different tables issued by the IRS. So it could be that your total federal tax withholdings on your paychecks are somewhat lower if the salaries are higher and the commissions are lower, which makes the refund in April lower, but the tax liability is exactly the same.

‎August 3, 202212:55 PM

Salary vs Commission/Bonus Tax (2024)
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