Bonuses are taxed as ordinary income, which means they are subject to the same federal income tax rates as your regular wages or salary. The amount of tax you owe on a bonus will depend on your total income and tax bracket for the year.
Your employer is required to withhold federal income tax, Social Security tax, and Medicare tax from your bonus, just like they do for your regular paychecks. The amount of tax withheld will depend on the amount of your bonus and the information you provide on your W-4 form.
In addition to federal taxes, you may also owe state and local taxes on your bonus. The tax rate for these taxes will vary depending on where you live.
It's important to keep in mind that bonuses are considered taxable income, so it's important to report them on your tax return and pay any taxes owed. If you have questions about how your bonus will be taxed, you may want to consult a tax professional for guidance.
