That big commission check looks amazing until you see the withholding.
Why Commission Withholding Seems Higher
Commission is "supplemental income" - often withheld at flat 22% federal, plus state. This can mean over or under withholding depending on your bracket.
Tips to Manage It
- Adjust your W-4 if consistently over-withheld
- Save 25-30% of each commission check
- Max retirement accounts to reduce taxable income
- Track expenses for potential deductions
⚠️ Note
This is general info, not tax advice. Consult a CPA for your situation.
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