Trading On Unemployment

I have been making a little bit of money trading stocks. Do I have to report it as income or would that be like a bank account earning interest?

its a little harder for them to bust that but that's up too you!! i do know if you make ANY off of labor from a employer THY WILL CATCH IT SOONER OR LATER!! soon as employer turns in 1/4ly taxes YOUR BUSTED!!

it's not income. you do not have to report it. went over it in my accounting class last semester.

Mattplusness said:

it's not income. you do not have to report it. went over it in my accounting class last semester.

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Yup, I am good. It is capital gains and not income. I called and asked unemployment. heh

You have to pay income taxes on cap gains. For securities held for less than a year (short term cap gain/loss) is taxed at ordinary income rates. For securites healf for more than a year (long term cap gains/loss) they are taxed at a more favorable long term cap gains rate (15%).

As far as reporting, your broker will generate a 1099 tax form and send it to you. That form is also sent to the IRS. The IRS can then comaire your return with the info they got from your broker to determine if you claimed you cap gains.


edit: Interest income (like from your bank account) is also taxable income.