Short-Term Capital Gains - taxed as same rate of ordinary income or included as ordinary income

[mitrichon]

Are short term gains counted as (a) "as ordinary income" or are they (b) "taxed at the same rate as ordinary income?"  This is a big difference.  A person with income of $35,000 may be in the 12% tax bracket but with the option of selling stock for a $45,000 Short-Term gain needs to consider the tax consequences of: (a) having that much more ordinary income and have their overage of $40,125 (for single) taxed at 22% or (b) getting taxed at 12% (same rate of ordinary income which excludes the short-term capital gain.)  

[George4Tacks]

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

[j-kanabis]

taxed at ordinary rates  so portion of your income (w/ short term gain) will be taxed at 10%; portion at 12% and portion @ 22%