How are stock earnings taxed? Please answer all questions within?
Although this information is available from the IRS you will need some ideas of what to look for. For forms and instructions see: http://www.irs.gov/formspubs/lists/0,,id=97817,00.html Capital gains are reported on a separate form 1040 Schedule D. Then the results are transferred to the main 1040 form. You will need to report the amount you paid for the stock and the date you bought it. Like wise for when you sold it. You will need to distinguish between long term and short term capital gains. Long term means the stock was held for a year before you sold it. Currently, the tax on long term gains is a maximum of 15% while short term is taxed as regular income. The good news is that you do not have to pay Social Security tax on it. You may have to pay an estimated tax, However, the next installment is due Jan 15th so you better get on top of this right away. The form you need is 1040-ES (available on the IRS website in PDF format). The 1040-ES form will show you how to compute all the es
