For short-term capital gains tax on stocks. Would my annual income tax rate be based on gross annual income or annual income minus the tax withheld by my employer?

dynamite369 · ‎August 28, 2020

TomYoung · ‎August 28, 2020

Your tax rate is based on your taxable income. That would be your gross income minus allowable deductions to come to "taxable income." Taxes withheld aren't a part of that calculation.

Taxes withheld are essentially "prepayments" of your tax for the year, and you don't really know your tax for the year until you prepare your income tax return.

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For short-term capital gains tax on stocks. Would my annual income tax rate be based on gross annual income or annual income minus the tax withheld by my employer?

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