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larryffalk
Mar 16, 2008, 07:50 PM
Hello,
I am negotiating with a new company for a sales position. From a tax standpoint is it better to be paid salary or commission. If I get an expense account can I deduct those expenses on my income tax. I would prefer a compensation plan that reduces my income tax liability.

Thank you, Larry

MukatA
Mar 19, 2008, 05:46 AM
This is for you to decide if you will make more money as salary or as commission.

But there is a big difference if you are employee and will get W2 or if you are an independent contractor (self employed) and will get 1099-Misc. For comparison between W2 and 1099 read: Your Tax Return: W2 or 1099: Employee or Independent Contractor. (http://taxipay.blogspot.com/2008/03/w2-or-1099-employee-or-independent.html)