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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15332
Experience:  15years with H & R Block. Divisional leader, Instructor
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Im retired, living on social security and part-time work,

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I'm retired, living on social security and part-time work, which earns about $20,000. This year I expect about $50,000 return on investments. What should I expect my capital gains tax rate to be? Thanks

Robin D. :

Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.
Capital gains are taxed differently depending on whether your investment is considered long-term or short-term. Short term gains are taxed as ordinary and would be your regular rate of tax.
Long term gains are taxed at either zero percent, 15%, or 20%, depending on your marginal tax bracket.
If you are single then your rate will be 25%. SO your CG rate would be 15%.

Robin D. :

My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again.

Customer: replied 3 years ago.

I'm not sure what constitutes long-term or short-term. I trade options which are held for up to 2 months, Is that a short or long term gain?

Longterm would be items held 1 year and one day. The trades that were held for 2 months would be short term.
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