Does short term gains on stocks sold count as earned or unearned income?

Question

I know that interests and dividends are unearned income.

And I know that wages, salaries and tips are earned income.

But what about short term capital gains?

Answer 1

While they are taxed as ordinary income, they are not considered "earned income" so you can not use them for calculating the earned income credit or an IRA contribution.

Answer 2

Gain on the sale of stocks is unearned income.

However, if the stocks were held for less than one year, the taxes are the same as for earned income.

Answer 3

Net short term capital gains are treated for individuals as ordinary income.

Answer 4

long term and short term useful properties are figured and taxed one by one. you do no longer do one first and one 2d. Or extra wisely, it is not significant the order you do them in, the end result's the same. short term useful properties are taxed as straightforward earnings. long term useful properties are taxed at a decrease fee, many times 15%. in the adventure that your marginal fee is already 15% or much less, then the fee is 5%. the object you appropriate to has no longer something to do with the way you checklist the useful properties on your return. It talks with reference to the long term fee dropping to 0% for persons in the 15% or decrease brackets in 2008. That smash disappears in 2010 except Congress acts to enhance it. It has no longer something to do with the return you're making waiting now.