Am I subject to income tax, capital gains tax and dividend tax?
Also, I buy and sell stocks. Do I have to pay income tax on any of the stocks I sell that i've held for less then a year? Do I have to pay capital gains tax on stocks that I've held for more then a year? And do I have to pay tax on my dividends?
So basically I'm wondering if there is any exemption for me since I've made only $4,000 pre-tax.
Answer:
Ok for staters you never get social security or medicare taxes back on your return. Those go into a seperate fund that supposedly will be aviable when you get old enough to retire.
On the stocks yes you have to pay for those even if you only had them less than a year. They should send you a form to show how much you have earned from it at the end of the year or quater depending on your state. znow if your increase in stock is do to a split here is word for word what the IRS says about having to pay taxes on it:
No, you generally do not need to pay tax on the additional shares of stock you received due to the stock split. You will need to adjust your per share cost of the stock. Your overall cost basis has not changed, but your per share cost has changed.
You will have to pay taxes if you have gain when you sell the stock. Gain is the amount of the proceeds from the sale, minus sales commissions, that exceeds the adjusted basis of the stock sold.
If you need tp [ay capital gains on either stock or dividends then you will get a form 1099 from the place you hold stock with.
And finally any year you earn over $2000 dollars you must file a return for. Depending on your staus, single, married, head of house hold, ect. is how much you will get in return. Married and head of house hold have a better shot of recovering the entire amout paid in federally then single. AS for state taxes, you have to file them seperatly with your state and those laws vary. Some allow you to get them back, others do not. Hope this helps you.
you'll need to fill out a tax form and find out. There are lots of software out there to help you. I use TurboTax. The return will figure out your total taxable income and if it is below the minimum, you will have no tax liability. Remember the federal and state forms are separate. If you have no tax liability you can get a refund of your fed and/or state tax but not your fica or medicare.
You have to report any gains on the stocks you sold whether they were held less than or more than a year.
Yes, you have to report dividends and interest too.
But if you didn't make a whole lot in stocks or dividends you probably will not have to pay income tax.
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