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how earnings in the stock market get taxed?
01-27-2013, 12:38 PM
Post: #1
how earnings in the stock market get taxed?
does income made in the stock market get taxed the same as the income I make at work? I know about the long term capital gains stuff but what else.

Does it matter what tax bracket I'm in as to how much it gets taxed? Do I have to pay state tax, social security etc??

Say I Make 100 dollars in the stock market and I was in a 25% tax bracket and took out the hundred I made before a year what would I be left with?
so wait if I buy 1000 dollars worth of stock and the price of the stock increases to give me 1200 dollars worth of stock at the end of the year they tax it even if my money's still invested in the stock? How do they differentiate this profit between a short term and long term gain then?
"Dividends are tax at your normal tax bracket, except for qualified dividends, which are taxed at maximum of 15% (5% for those in 10% or 15% bracket), and you have to pay federal and state tax, but not social security or medicare tax."
so if I made 100 dollars in the stock market in over a year I would get taxed 15% + federal tax of 25% + state tax? Is that right? that ends up being over 40% of the income going to taxes.

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Messages In This Thread
how earnings in the stock market get taxed? - icpooreman - 01-27-2013 12:38 PM
[] - Wayne Z - 01-27-2013, 12:46 PM
[] - PepsiLime - 01-27-2013, 12:46 PM
[] - bostonianinmo - 01-27-2013, 12:46 PM
[] - ninasgramma - 01-27-2013, 12:46 PM
[] - Omar B - 01-27-2013, 12:46 PM

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