<#-- Rebranding: Header Logo--> <#-- Rebranding: Footer Logo-->

How will my profit and loss from day trading be taxed at the end of the year?

How is my profit and loss from day trading taxed at the end of the year? I also have a job and I'm always in the 15% tax bracket. If I make a profit from trading while I work, and my earnings from trading and working stay within the 15% bracket, will I be taxed the same?

Career / Compensation, Taxes
Sort By:
Most Helpful
February 2017


I am guessing that your day trading is not in a tax deferred account, but in an investment account.

Therefore, any profits will be treated as long term or short term capital gains.

Capital gains and losses are classified as long term if the asset was held for more than one year, and short term if held for a year or less. Taxpayers in the 10 and 15 percent tax brackets pay no tax on long-term gains on most assets; taxpayers in the 25-, 28-, 33-, or 35- percent income tax brackets face a 15 percent rate on long-term capital gains. For those in the top 39.6 percent bracket for ordinary income, the rate is 20 percent. Short-term capital gains are taxed at the same rate as ordinary income. There also is a 3.8 percent tax on net investment income for single taxpayers with modified adjusted gross income above $200,000 ($250,000 for married couples filing jointly). Note, too, that capital gains, in some cases, face an effective tax rates above the 23.8 percent statutory rate because of phaseouts in the tax code.

I hope that helps!

February 2017
February 2017
February 2017
February 2017