Ordinary Income

Ordinary income is income that is not considered to be a capital gain. This includes income from wages, salaries, tips, commissions, bonuses, and other forms of compensation for personal services. It also includes income from interest, dividends, rents, royalties, and other forms of investment income.

Ordinary income is taxed at the same rates as other personal income, which are currently between 10% and 37%. However, some types of ordinary income may be taxed at a lower rate, such as long-term capital gains.

There are a few important things to keep in mind about ordinary income. First, it is important to understand what types of income are considered to be ordinary income. This includes all of the income sources listed above, as well as any other income that is not considered to be a capital gain. Second, it is important to know how ordinary income is taxed. Ordinary income is taxed at the same rates as other personal income, which are currently between 10% and 37%. However, some types of ordinary income may be taxed at a lower rate, such as long-term capital gains.

Finally, it is important to understand the implications of ordinary income for your financial planning. Ordinary income can have a significant impact on your taxes, so it is important to understand how it is taxed and how it can affect your overall financial situation.

Here are some additional details about ordinary income:

* Ordinary income is taxed at the same rates as other personal income, which are currently between 10% and 37%. However, some types of ordinary income may be taxed at a lower rate, such as long-term capital gains.
* Ordinary income includes all of the income sources listed above, as well as any other income that is not considered to be a capital gain.
* Ordinary income can have a significant impact on your taxes, so it is important to understand how it is taxed and how it can affect your overall financial situation.