I have been investing in some stocks over the years and of the $3,600 i invested, im up to $5100. So say $1500 profit. If i wanted to withdraw this for some unexpected costs, what would the taxes be like on that? Is this a bad move? Dont want to shoot myself in the foot and cant get a clear answer online. Just want to weigh my options.
Thanks
Tax Implications on a Robinhood withdrawal
byu/Kevingarbark ininvesting
Posted by Kevingarbark
2 Comments
If it’s been invested less than a year it’s whatever your normal tax rate is. If it’s more than a year lookup long term capital gain tax rates for your bracket.
The withdrawal is not what triggers the tax, it’s when you sell the stocks for the profit.
If you booked your profit, even just sitting in the account, you’ll owe tax on those gains.
Edit:
* if you sold before 1 year of your buy order, then you’ll pay your income tax rate
* If you hold for 1 year or greater, the tax rate is ~15%