It is taxed as ordinary income and add to your AGI and taxable income. The tax rate is whatever the marginal tax rate is for the amount of taxable income that you have which can be between 10%-37%.
(Add another 10% if under age 59 1/2).
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
