Tax Law (Questions About Taxes)/Commision Checks


My wife works for an insurance company as a broker.  She is paid by her employer and has all necessary raves taken out.  However she receives commision checks also which are not taxed and her boss considers them seperate income from her salary.  For the past three years I've been filing that she is self employed as far as these commision checks go but I believe I'm costing us money doing this because the tax liability is higher.  How should I handle this income?  Do you know the tax form?  I don't know if it's relevant but I use taxslayer.


Thanks for your question.  

The employer is wrong. I broached this subject with an IRS agent once with the question, "Would there every be a circumstance where someone would legitimately be an employee receiving a W-2 and also a 1099-MISC."  The answer was an emphatic "No." She is an employee earning salary plus commission - both are subject to withholding and should be on a W-2.

Under the circumstance, there is probably no less expensive alternative.  The facts are 1. The income is subject to income tax. 2. It is also subject to social security/Medicare.  Since the employer is not taking out these taxes and paying the employer's share of SS/Medicare, somebody has to pay it, and you are the one right now.

Not much help in terms of answer, but that's pretty much the way it is.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

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