What additional taxes do you have to pay (if any) if you have money in the stock market?

Bry: What additional taxes do you have to pay (if any) if you have money in the stock market?
I put a little money into the stock market this summer right after I graduated from high school(about $ 650). Since I do file taxes for my job are there any additional taxes you have to pay if you’ve made money in the stock market?

Answers and Views:

Answer by William Kasper
None, there is absolutely no taxes on profits made from the stock market.

Answer by Mr. Smartypants
You only pay taxes when you sell a stock, if it’s worth more than you paid for it. You pay capital gains taxes on whatever you made. OTOH if you lost money, you can deduct it!

Answer by Judy
If you sell stock, you report it on your tax return. If you have a gain you pay capital gains tax.

If you get dividends, you pay tax on those.

Answer by Scott M
If you have sold the stock and there was a gain, then that gain would be subject to taxation. If you held the stock for less than a year you would be subject to short term gains tax which would be about 30%. If you held it for longer than a year it would be about 15%.

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Answer by StephenWeinstein
You do not have to pay taxes because you “have” money in the stock market.
You do have to pay additional tax because you “made” money in the stock market.
There is a big difference.

There are two taxes to consider:
1. Capital gains tax. This occurs when you sell stock for more than it cost you (even if you keep the money in the stock market, by buying another stock, you still have to pay the tax).
2. Dividends that the company pays to you (whether or not you reinvest them) are taxed as regular income.

Answer by Jason Bone
If you gain then you need to pay taxes. The tax rate depends on whether it’s short or long-term gains. Capital gains tax rate is ridiculously low–max is near about 15%.