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Question for the Money Doctors

Question submitted on Jun 14, 2019.

Question

Recently, I sold some shares of stock in Target Corp. I requested that the Federal tax be taken out, to no avail.The check was for $11,846.98 What percentage of that money is for the tax, and how can I pay it now? Thank you for your time.
Sincerely,
Bob Allan

Answer

The brokerage firm will not withhold taxes when you sell stock, unless you are subject to backup withholding.  You pay tax on the capital gain from this transaction. The gain is $11,846.98 minus your cost basis.   If you purchased the stock through the brokerage firm, they should have this information.   You can ask the brokerage firm your capital gain from this transaction.   The tax will be based upon your level of income.  Capital gains are taxed at 0%, 15%, and 20%.   I assume your capital gains tax will be at 15%.   If you want to pay the tax now, you can pay it at  www.irs.gov/directpay.   Please click on the current year estimated payment.   Don't forget to do the same for your state.   Your state should also have a link on their website to pay online.


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