How much in taxes should I hold for cashed capital gains?

Swank: How much in taxes should I hold for cashed capital gains?
Had to cash out capital gains fund, about 22k. My question is, how much should I set aside for taxes?

I live in TN, where there is no income tax, but they do tax dividends.
Wanting to know before it’s too late.
Thank you.
There is no income tax in TN.

Answers and Views:

Answer by Meghan
I would say AT LEAST 30% of it, so about $ 7K.

Answer by Iffy
For both Federal and State set aside minimum of 30%

Answer by Ryan M
I agree, hold 30%….better safe than sorry. If that ends up being too much (which it might be) the worst case scenario is that you have a mini slush fund.

Answer by Judy
Federal will take up to 15%, depending on your total income for the year and tax bracket.

Answer by acmeraven
In the 15% bracket in 2010 the long term capital gains tax rate is zero.

Answer by Jan
Your federal tax should be 15% or $ 3,300. For Tennessee, I believe you’ll owe $ 1,245. This does not include any penalties you might incur for not paying your taxes early.

Answer by ninasgramma
How much of your cash is capital gains? You can ask your financial institution what your initial investment was, plus any reinvesments. Only the increase in value would be capital gains income.

Your long-term capital gains tax cannot be greater than 15%. If you have no other income, or are in a tax bracket less than 25%, you have zero long-term capital gains tax. So to be conservative, without knowing anything more about your income, set aside 15% of your gain for federal income tax.

Tennessee will tax interest and dividends at a flat rate of 6%. Capital gains are in neither category and TN will not tax you on this income.

Answer by tro
you will have to determine what your actual profit is
you may have cashed it out but how much did it cost you when you bought it?
the difference will be your profit and if it is long term 15% until the end of the year, then it will be 28%

Answer by Patricia
21 percent — 15 percent federal and 6 percent state. However, I would hold out more just to be safe. It really depends on your federal tax bracket, deductions, etc.

Answer by StephenWeinstein
Do not “hold” any of the money. Send the tax money to the IRS immediately, using Form 1040-ES.