The absolute most (%) that someone can be taxed?

Question

I have a trading investment account. I need to pull out a certain percent of my earnings into a separate tax account so that I will be ready for Uncle Sam when the time comes. What is the absolute highest that I could possibly be taxed, worst case scenario?

Federal tax, that is. . .

Answer 1

To properly answer this question, I would need more detail. On investments, there will be at least two different rates. A short-term rate for investments that were held less than a year. And, a long-term rate for investments that were held for more than a year. Short-term tax rate will be close to your current tax bracket level and the long-term rate will be 15%. Remember, only your gains are taxed and only after the investment has been sold. So, if you have an idea of how much gain you have made over the year, withdrawing approximately 30% of that amount should cover most, if not all of your tax burden. Many times, the 30% will be more than enough. If this is a significant amount of money, $10,000 or more, then I recommend you talk to a competent tax attorney or tax specialist. Most tax preparation chain people are probably not familiar enough with the tax laws. Don't get me wrong, they are plenty good for MOST people's needs at tax time, but a true specialist is needed in some instances.

Answer 2

The highest income tax rate is currently 35%. You have to have a very substantial income to hit that rate.

If your income is from self-employment, there's another 15.3% for self-employment tax (social security and medicare).

Answer 3

UPS taxed me 69.8 % for a delivery of holiday gift.
I received a holiday gift from a friend abroad, and UPS delivered it. A month later they asked total 69.8 % of various import and handling taxes. I did not want to pay, they started to charge interest then I had to.
When I received the delivery, they did not inform neither warned. A month later I am sucked. Believe or not. Do you understand how they make money from delivery ????