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Level 2
posted Oct 30, 2024 3:30:51 PM

Taxes paid for withdraw from investment account

What taxes will I pay if I make a $5,000 withdraw from my investment account?

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3 Replies
Employee Tax Expert
Oct 30, 2024 3:54:24 PM

Your combined income from all sources determines the tax rate.   However; if you investment is long-term there are reduced rates.   Short-term gains come from the sale of property owned one year or less and are typically taxed at your maximum tax rate, as high as 37% in 2024 and 2025.  Long-term gains come from the sale of property held more than one year and are typically taxed at either 0%, 15%, or 20% for 2024 and 2025.

 

In your example of $5,000 at say 20% the Federal tax would be about $1,000 not considering other factors including state taxes if applicable.

 

Capital gains tax tips 

 

 

TurboTax has a great tax caster for you to determine your tax liability:  TaxCaster 

Level 2
Oct 30, 2024 4:09:48 PM

Thank you so much!

Employee Tax Expert
Oct 30, 2024 4:12:36 PM

You are welcome.    Please be sure to "Mark as Best Answer" Jax.