Filing Your Taxes for Investment Earnings


If you're new to investing, you may not know where to start when it comes to filing your investment earnings. What forms do you need to file? How do taxes on investments work? If these sound like questions you've asked recently, let's take some time to learn a few things about doing your taxes as an investor.

Capital Gains Tax

If you've just sold your first investment at a profit after holding it for over a year, you may be subject to capital gains tax. If you held it for less than a year, you may end up paying short-term capital gains tax, which is the same rate as your normal income. This may be more or less than the capital gains tax rate depending on your income. If you do need to pay capital gains, however, you should know what the rates are for your tax bracket. As an example, let's say your filing status is single while you're doing your 2023 taxes. Income up to $44,625 is taxed at 0%, income from $44,626 to $492,300 is taxed at 15%, and any income above the latter amount is taxed at 20%. These percentages can differ depending on your filing status, so it's important to know which category you fit into beforehand. Additionally, the tax rates change from year to year—be sure to keep track of what changes are made to the capital gains tax rates when they're released so you can keep them in mind for the next tax season.

As an investor, it may be necessary to be aware of capital gains tax when you buy and sell, as this can impact your strategy. Depending on your financial situation, you may prefer to pay capital gains tax over short-term capital gains tax. Knowing ahead of time can help you avoid shock when the tax deadline rolls around, and keep you prepared during the year as you decide what investments you want to take on. Every investor is different, so depending on your risk level, what suits you may differ from what suits your peers. It's crucial that you're in tune with your investments as you're making them because the taxes may alter how you choose to allocate funds to your portfolio. Even still, always remember that no investment can guarantee a profit, whether or not you're paying capital gains tax. Of course, this is just a brief glance at capital gains tax, and depending on your investments, it may affect you differently.

Save with TurboTax

As a Webull client, you can save 20% on your taxes with TurboTax Premier. Additionally, you can easily import your tax documents from Webull to TurboTax, saving you time during the tax filing process. TurboTax Premier can also analyze your portfolio to apply capital gains loss carryover, reducing your tax liability. So, even if you suffered any investment losses, TurboTax can help by potentially lowering your owed taxes due to capital gains. Now that it's officially tax season, you can start filing today and mark one more thing off your to-do list.

Meet with a Tax Professional

Need more help? TurboTax has year-round experts available to help you out. If you'd rather hand off your forms to a professional, they can even complete your taxes for you from beginning to end. Many people choose to have a tax professional assist with their taxes, so this is a great option for those who don't have the time to file, would prefer having an expert's assistance, or have complex taxes they don't want to risk mistakes on. An expert can also help answer any questions you may have about your taxes and how to file.

How Can You Access Your Tax Forms?

Looking for your tax documents on Webull? If you're on the desktop site, head over to your e-document center, log-in or verify your identity, and download your documents. If you're using the app, click on your account tab, scroll down to account management, and click on "Tax Documents" to download your forms. To import your documents with TurboTax, simply enter "Webull" in the search bar, select Webull Financial as your bank, and import your 1099-B. For additional instructions, check out this page for help finding your documents on Webull and this one for help importing with TurboTax.

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Disclaimer: Webull does not offer tax advice. For any questions about taxes, including how to file, we recommend speaking with a tax professional. Webull Financial LLC (member SIPC, FINRA) offers self-directed securities trading. All investments involve risk.  Index Option Contract Fees, Regulatory Fees, Exchange Fees, and other Fees may apply. More info: