Posted by: Tax services August 26, 2015
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Mr. D,
I am not sure whether $37,400 is your taxable income or your gross income. Assuming $37,400 as a taxable income, the short term capital gain will be taxed at ordinary rate. Which means all of the income including short-term capital gain, first $9,225 will be taxed at 10% and remaining $28,175 will be taxed at 15%.
Keep in mind if $37,400 + 1050= $38,450 is your total income, that's not a taxable income. Based on the info you gave, you filing status is single and you get to deduct ( $6300 +
$4000) $10,300 from total income. So, your taxable income will only be ( $38,450-10,300=$28,150). So, for first $9,225, you pay tax at 10% and remaining ( $28,150-9225=$18,925) $18,925 at 15 %.
As your information was not complete, I provided answers for both scenario depending on the figure that gave me was your total income or taxable income.
I am not sure whether $37,400 is your taxable income or your gross income. Assuming $37,400 as a taxable income, the short term capital gain will be taxed at ordinary rate. Which means all of the income including short-term capital gain, first $9,225 will be taxed at 10% and remaining $28,175 will be taxed at 15%.
Keep in mind if $37,400 + 1050= $38,450 is your total income, that's not a taxable income. Based on the info you gave, you filing status is single and you get to deduct ( $6300 +
$4000) $10,300 from total income. So, your taxable income will only be ( $38,450-10,300=$28,150). So, for first $9,225, you pay tax at 10% and remaining ( $28,150-9225=$18,925) $18,925 at 15 %.
As your information was not complete, I provided answers for both scenario depending on the figure that gave me was your total income or taxable income.