Being that I'm married, my wife and I file jointly, and I usually get about 2,200 somewhere in that range. Last year I took out 3,000 and it didn't effect it that much. I think it was a couple of hundred dollars, any ideas?
2007-12-19 02:10:37 · 4 answers · asked by ceza_us 1 in Business & Finance ➔ Taxes ➔ United States
It depends. Most likely it won't make much of a difference. The tax is based on the difference between what you paid for the shares and what you sold it for. Assuming it went up, you would pay capital gains tax on the difference. So if you bought it for 6500 and sold for 7000, and your tax rate is 20%, then its $100 tax.
If its in a tax deferred account such as an IRA then you have to pay a penalty if you are under retirement age... so its quite a bit more in that case.
2007-12-19 02:21:17 · answer #1 · answered by Bernie 2 · 0⤊ 0⤋
That really depends on your tax bracket, how close you are to the next tax bracket up, what type of account you withdraw the money from (pre-tax, after-tax, etc) and several other factors. Go through last year's tax form with the numbers for this year and you'll have a really close estimate of how much it will affect you.
2007-12-19 02:22:54 · answer #2 · answered by J P 4 · 0⤊ 0⤋
How much did you pay for those funds?
Were they in a taxable account or an IRA?
If they were in a taxable account, only the gains (if any) are taxed.
2007-12-19 02:19:15 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
depends on the gain or loss of the funds you withdraw (sell) - you might be the one who has to figure it all out - could be a loss, the way the market has been this year
2007-12-19 04:47:33 · answer #4 · answered by Anonymous · 0⤊ 0⤋