Is a bonus from my regular work considered as ordinary income and taxed accordingly, or does it have some special tax rate?It's taxed as ordinary income, but if it comes in a separate check* it will have different withholding rules. IIRC, my last bonus was withheld at 25% on the federal side, which nicely matched my marginal tax rate. But the State of New York withheld at the highest possible tax rate, something like 9.77%, which I'm nowhere near.If the bonus is rolled into a regular check, the withholding is the same as if you had that much more regular salary in that pay period.Patzer* I say "check" even though my pay is really a direct deposit. I don't know what other short term to use.
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