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New Member
posted Mar 12, 2021 12:48:28 AM

Planning for 2021 taxes. Trying to find out if my only income is social security and I sell stock do I incur capital gains tax?

Social security under 25,000

0 4 811
4 Replies
Expert Alumni
Mar 12, 2021 4:48:21 PM

You will have capital gains if you sell stock at a gain. However, you may not owe any tax on the capital gains, as they are not taxable if you are in a low federal income tax bracket.

New Member
Dec 6, 2024 6:20:34 PM

Unsure as if tax owed when social security income under $23k and profit from stock sale will be $25k.

Level 15
Dec 7, 2024 10:01:20 AM

@Toyota22 You have not mentioned your filing status.

 

 

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.

 

Who has to file?

http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F

 

 

Level 15
Dec 8, 2024 6:47:57 AM

Q. Unsure as if tax owed when social security income under $23k and profit from stock sale will be $25k?

A. You will not owe any income tax, but you are required to file an income tax return.

 

The capital gain raises you total income past the filing threshold, but the amount is still within the 0% long term capital gain rate bracket.