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What Is Supplemental Income and Why Is It Taxed Differently?

Updated: Nov 12, 2025

Supplemental income refers to extra earnings received on top of your regular paycheck. It’s often irregular or unpredictable, which is why the IRS requires specific protocols to prevent underpayment. Here, we’ll cover the different types of supplemental pay and how the earnings are taxed. 


 
 
 

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