What will I pay in Capital gains tax?
I am a filed as a dependent with no earned income. I know as a dependent I have a standard deduction of $1100, but say I earn $1500 in short term capital gains, will the $400 difference be taxed as ordinary income?
- StephenWeinsteinLv 71 month agoFavorite Answer
Because it is a short-term capital gain, yes it will be taxed as ordinary income. If you are taxed on only $400 of income, then the federal tax rate is 10%, so you would pay about $40 to the IRS. Depending on where you live, you might or might not also pay state income tax.
- AmyLv 71 month ago
Yes, short term capital gains are ordinary income.
The tax on $400 is $41.
- Karen LLv 71 month ago
How could we know? You didn't tell us what country you're in so we can't even look it up for you.