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I'm a student who bought some Dell last March and am looking to sell before they announce earnings Feb 16th.
It will be my only source of income for the year (about $4000 profit). I was wondering whether or not I will have to pay taxes on it since in the state of Massachuestts if you make less than $8000/year you don't pay income taxes. (is stock proftis considered in the same catagory as work-income?) If I do have to pay taxes, what rate will I have to pay and would it be less if I held the stock for a full year? (thats what i hear) Basically I'd like to know so that I can weight the benefits for selling before 2/16 (since dell usually tanks a bit after earnings annoucements no matter how good) or holding till March for a lower tax rate.
Thanks for you help!
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