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[[I was wondering about a few things concerning some recently realized short term capital gains I've
incurred.]]

Ok...let's see if I can help you out.

[[ These gains are considered earned income in terms of tax rates,]]

Sorry...wrong terminology. They are treated as "ordinary income"...taxed at your marginal tax rate. They are in no way considered "earned income".

[[ but are they truly treated that way
with respect to IRA contributions?]]

Nope...because they are NOT earned income. In no way, shape or form. They are short term capital gains, taxed at your ordinary income rate.

[[ (If I had the $2000 gain outside a deferred acount can I use this
money to fund an IRA if this type of income were the only earned income I had?]]

Nope...because, again, capital gains are NEVER considered earned income.

[[ This is more
hypothetical than anything since I currently work, but if I were to go back to school it might not
be...)]]

So now you know the facts.

[[ If they are treated as equal to earned income do I need to have the FICA "taxes" deducted along
with any estimated federal and state taxes owed?]]

The gains would certainly be subject to federal and (possibly) state income taxes. But they would not be subject to any FICA or Medicare taxes because they are not "earned income" by definition.

[[ Thanks in advance.
Happy Holidays!
Manhattan]]

You are very welcome. And Feliz Navidad to you and yours, Manhattan!!

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Roy

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