MFJ , income less than 30k, taxes on stocks?

[Abcd1234 102]

Someone who has dealt with stocks, i am very new to this, I want to know that if i am filling married jointly and our income is less than 30k no dependents, do we need to pay tax on profits earned if short term and how about ling term? Need help before i sell stocks, God bless you🙏

[arken 4,197]

Your sale of stocks at this time doesn’t affect the tax filing for 2019.

[Abcd1234 102]

36 minutes ago, arken said:

Your sale of stocks at this time doesn’t affect the tax filing for 2019.

Talking about taxes i could owe for 2020. If there is good amount of tax i don't want to sell in short term. I don't know i read that if someone is in tax bracket of 15% taxes on stocks would be 0. I dont know i could be totally wrong. I want someone to guide me a little please 

[Crazy Cat 41,886]

4 minutes ago, Abcd1234 said:

Talking about taxes i could owe for 2020. If there is good amount of tax i don't want to sell in short term. I don't know i read that if someone is in tax bracket of 15% taxes on stocks would be 0. I dont know i could be totally wrong. I want someone to guide me a little please 

I think that applies to long term capital gains....

Here is a site I found useful:  https://www.thebalance.com/how-will-selling-my-stocks-affect-my-taxes-2385919

Edited April 11, 2020 by Lucky Cat

[Abcd1234 102]

18 minutes ago, Lucky Cat said:

I think that applies to long term capital gains....

Here is a site I found useful:  https://www.thebalance.com/how-will-selling-my-stocks-affect-my-taxes-2385919

Thanks for reply, so what i understand is capital gain is taxed at rate at which your income would be taxed for short term?

   Now about tax rate do i look at irs? It seems like tax rate for income below 78000 for married couple is 12%. If my income of 2020 is 30k would i be taxed at 12%. Would i need to pay other things as well like social security tax, medicaid tax etc that usually go with income on top of 12%( for capital gain of stocks)or it would be on only 12%. Have you done taxes with stocks income before.

  Again thanks for help

Edited April 11, 2020 by Abcd1234

[WOODHIKER 30]

Why don't you just use one of the free filing tax software programs from IRS.gov? You don't have to actually submit the return for filing, but just input your information and the program will calculate the amount of tax you would owe. 

[Lil bear 4,217]

4 minutes ago, WOODHIKER said:

Why don't you just use one of the free filing tax software programs from IRS.gov? You don't have to actually submit the return for filing, but just input your information and the program will calculate the amount of tax you would owe. 

This was going to be my suggestion too. 
For the IRS, your income is either earned income ( wages etc from a job) or unearned income ( interest and capital gains or losses from savings, investments, withdrawal from IRA 401k  etc). Each type of income is assessed according to the “type” rule of the IRS and it gets complex. Some is taxed at a higher rate, others at a lower rate , some  included for social security and Medicare taxes and other income excluded ...

You can also access information on the taxation on investments from the IRS publications. 

[Abcd1234 102]

4 minutes ago, WOODHIKER said:

Why don't you just use one of the free filing tax software programs from IRS.gov? You don't have to actually submit the return for filing, but just input your information and the program will calculate the amount of tax you would owe. 

Are there free tax filing softwares? Lol i didn't know that, why i go to Liberty tax for filing every year🙄, can you help me where can i find those softwares? Also for 2019 taxes , can i file through those softwares? Are they safe i mean they are third party softwares or irs has some software?

[Abcd1234 102]

1 minute ago, Lil bear said:

This was going to be my suggestion too. 
For the IRS, your income is either earned income ( wages etc from a job) or unearned income ( interest and capital gains or losses from savings, investments, withdrawal from IRA 401k  etc). Each type of income is assessed according to the “type” rule of the IRS and it gets complex. Some is taxed at a higher rate, others at a lower rate , some  included for social security and Medicare taxes and other income excluded ...

You can also access information on the taxation on investments from the IRS publications. 

Where can i find software for taxes by irs.gov

[Lil bear 4,217]

Just now, Abcd1234 said:

Are there free tax filing softwares? Lol i didn't know that, why i go to Liberty tax for filing every year🙄, can you help me where can i find those softwares? Also for 2019 taxes , can i file through those softwares? Are they safe i mean they are third party softwares or irs has some software?

Turbo tax by intuit. But the free software doesn’t include the investment section .. but you only pay the fee when you file .. so set up an account and run the numbers without paying .. just don’t hit the submit button. 

[Lil bear 4,217]

1 minute ago, Abcd1234 said:

Where can i find software for taxes by irs.gov

The IRS doesn’t have their own .. but there are several key software packs used by most of us who file our own. I’ve used Turbotax the past 2 years and we have ..  well probably had .. investments etc to include. 

[Abcd1234 102]

1 minute ago, Lil bear said:

Turbo tax by intuit. But the free software doesn’t include the investment section .. but you only pay the fee when you file .. so set up an account and run the numbers without paying .. just don’t hit the submit button. 

I tried turbo tax once long time ago and I  think as far as i can remember it started asking money in middle of it? I may not remember correctly. So what you are saying is i can see all taxes that i would owe before i hit submit button?

[Lil bear 4,217]

2 minutes ago, Abcd1234 said:

I tried turbo tax once long time ago and I  think as far as i can remember it started asking money in middle of it? I may not remember correctly. So what you are saying is i can see all taxes that i would owe before i hit submit button?

Correct ... you won’t be able to save or print anything until you pay .. but that’s been my experience 

Remember  though that the answer it gives is only as good as the information it gets .. so if you are missing info or estimating etc then the outcome of the run through will be impacted by that. Done correctly though , the tax return it estimated for me was what the IRS  paid out 

Edited April 11, 2020 by Lil bear

[Abcd1234 102]

1 minute ago, Lil bear said:

Correct ... you won’t be able to save or print anything until you pay .. but that’s been my experience 

So the stocks that i purchased were in 2020, and i am thinking to sell them at profit now, so ofcourse taxes would be due next year. But just to get the idea , can i fill application at turbo tax for 2019 taxes with capital gains on investment just to check the numbers, and then can i go back and change info on it when i really file for 2019 tax returns? I mean it does allow you to go back and change right? Because i am thinking to file for 2019 taxes on their software as well now

[Abcd1234 102]

Also if anyone have any suggestions how can i save on taxes, on capital gains on stocks, it would be very helpful,as i am completely new to this game, and any info would most likely be an information for me at this point. 

Thank you sooo much