What is my tax liability for withdrawing money from my TD Ameritrade brokerage account?

Question by Money: What is my tax liability for withdrawing money from my TD Ameritrade brokerage account?
Super green as far as this goes, but if I have a standard brokerage account, and I withdraw some of the funds I put into it, do I have to pay taxes on that money? What %?

Thanks for any help.

Best answer:

Answer by the tax lady
How are we supposed to know.

It's your investment.

Did you have a profit or loss?
Was it short term or long term?
What tax bracket are you in?

It could be 0%, 15%, 25% or higher.

Add your own answer in the comments!

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Comments (3)

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  1. Mike says:

    Withdrawing funds from a brokerage account (non pension account) does not produce a tax liability. A tax liability will occur if you have a profit whenever you sell a security whether or not you withdraw the money from the account.

  2. Romeo says:

    If you paid income tax on it before you invested it, you don’t need to pay tax again. If you made a profit, you will need to pay tax on the profit. If you own a security and want to put it in another broker account, you can do a transfer of the security to the other broker without selling it.

    I am watching to see if Congress will extend the Bush tax break or let it expire at the end of 2010.

  3. jeff410 says:

    The money became taxable once you sold the stock. Not when you take the money out of your account. The rate you are taxed on the sales depends on your tax bracket and how long you held the stock before you sold.

    If you held a stock more than a year you pay no taxes in the 10 and 15 percent tax bracket. All higher brackets are capped at 15 percent.

    If you held it less than a year you pay tax at your normal tax rate, just like wage income.