Do I have to file the tax for 2007 if I am not working, but have some capital gain on stock or funds on my traditional ira account ?
2007-10-11 02:52:42 · 6 answers · asked by fhjccy 1 in Business & Finance ➔ Taxes ➔ United States
All IRA distributions are treated as ordinary income, so if you have stocks in the fund, those gains will not be taxed at the capital gains rate, they will be taxed at your regular tax rate.
Since you are over the age of 59.5, you can withdraw from your IRA without penalty. If you have no other income, and are single, and not a dependent, you can withdraw $8,750 from your account and you will pay no income tax, and not be required to file a tax return. You can take an additional $8,000 (approximately) and pay only 10% of tax on the amount over $8,750.
If you take a small enough amount out of your IRA so as to not trigger tax or require a tax return, request that no withholding be made from your distribution. If taxes are taken out of your distribution, you will have to file a return to get that withholding refunded to you.
2007-10-11 03:29:00 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
If it's a traditional IRA, all distributions are taxable as ordinary income. Since you are over age 59 1/2, you don't pay the 10% penalty, however.
If it's a Roth IRA, any distributions are fully tax free.
2007-10-11 05:02:02 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You will have to file, and if you made more than $6k, you will have to pay. I could easily be wrong about the amount of money you had to make, but there is a floor. Since your IRA is your only source of income, the tax shouldn't be too much. If there has been any money withheld, you cannot get a refund unless you file.
2007-10-11 02:58:02 · answer #3 · answered by jack of all trades 7 · 0⤊ 0⤋
You wouldn't pay any penalty, but if it's a traditional IRA and not a Roth, you'll pay income taxes on the amount you withdraw if your total income, including the withdrawal, is enough to have to pay anything.
2007-10-11 06:51:11 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
Yes, if you have an IRA structured to delay taxes (most are) then you have to pay taxes. Being past 59.5, you don't have to pay a penalty for early withdrawal.
2007-10-11 02:56:23 · answer #5 · answered by Mike1942f 7 · 0⤊ 0⤋
If you are collecting unemployment compensation, that is also taxable.
2007-10-11 04:26:35 · answer #6 · answered by r_kav 4 · 0⤊ 0⤋