Have a Tax Question? Ask a Tax Expert
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
If you make under $400,000 per year, your capital gains rate will be 15% provided you are in at least the 25% tax bracket
The sale of stocks and bonds will be taxed at 15%, so that is the amount that you should have withheld or set aside for taxes.
Indiana will tax the gains at a rate of 3.4%
So, altogether you will pay about 18.4% on your gains.
Keep in mind, that only the gains are taxed. Not the entire withdrawal
Is there anything else that I can assist you with today?
If not, please rate my response as "excellent" so that I may receive credit for assisting you today
I just replied in another place. I hope you get it.
We need to take out around $55,000. out of my stocks and bonds to pay the unexpected bills. Tax information from last year: Adj. gross income $77,805; taxable income $57,155; total tax $7,706; effective tax rate 9.9%. We are both retired and on Medicare (me 9/13), have pensions, social security, and I have a part time job. We will make around the same this year as we did last year. So what percentage in taxes should we have set aside or taken out for the stocks and bonds we take out? I don't understand tax rates as you declare more money in one year. Thanks for any help.