Capital Gains Tax and Zero Taxable Income
I'm deployed overseas with the Army and therefore have 0$ taxable income for 2009. So far this year I'm up approximately $80,000 and down $30,000 on the stock market for a net of $50,000.
With the $0 taxable income, does this mean I'm in the lowest (10%) tax group for the year? If so, does that mean I only pay 10% ($5,000) on all those short term capital gains?
My last question is that I opened a Roth IRA with $5,000... does that offset the $5,000 tax I need to pay in the paragraph mentioned above?
I find it hard to believe I won't have to pay anything in taxes this year...
Thanks in advance!
