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?

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  • 1 month ago
    Favorite 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.

  • Amy
    Lv 7
    1 month ago

    Yes, short term capital gains are ordinary income.

    The tax on $400 is $41.

  • 1 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.

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