Tax Implications withdrawing from acorns invest account

[Summer94]

Hello, I am hoping for some guidance. About 2.5 years ago I start using Acorns, and made an Acorns invest account where I was investing my “spare change” and depositing $6 into the account every week. I have now reached about $1,000 and would like to withdraw this money. It says possible tax implications and id like to know if that is true and what that means. 

Thank you

[John-H2021]

Hello,

If you take the money out you will either have a capital gain or loss, If you have a capital gain you will get taxed on the profit you made, if it's a loss it will either offset your other gains or get up to $3,000 deducted from your income to figure your gain or loss take the proceeds you get from the sale minus what it cost you and if it's positive you have a gain if it's negative you have a loss.

You may also receive interest and/or dividends from this account. 

You will receive a statement in February of 2025, it may be a 1099-b, 1099-int, 1099-div or it may be one combined statement.

You should have received these statement the past few years and reported them on your return.

Edited 9/9/24

[Summer94]

Okay, with this account I link my debit card and with every purchase I make it rounds it up to the nearest dollar amount and put that’s in my account and then I deposit $6 every week. If I only withdrew that money would I still have tax implications ? 

[John-H2021]

If you are taking money out that has already been taxed you won't pay taxes on it again but if part of that money is interest or dividends then that portion is taxable.

If they are buying stock with the money and then selling it when you need money then you pay on the gain.

[Summer94]

Okay, with this account I link my debit card and with every purchase I make it rounds it up to the nearest dollar amount and put that’s in my account and then I deposit $6 every week. If I only withdrew that money would I still have tax implications ?