What is the tax rate for my stock investment?

My annual income is $40K and I am wondering what my tax rate for my short term/long term stock investment suppose to be.

I want to check against Turbo Tax because I feel like they are not calculating my tax for my investment correctly, sometimes I get 25% then 35% I am not sure what's the correct amount.

Can someone also tell me what tax rate I am suppose to be paying for based on my Income?

You dont say if you are single, married filing jointly or seperately so check this web site for 2007 Federal tax rates.
http://www.irs.gov/formspubs/article/0,,...

short term the gain is taxed at the same rate as your other income (less than 6 months held)
long term it is much lower, I think 15%
watch out for those Democrats
they want to raise that long term rate
don't vote Democrat

This is one of those puzzles mathamaticians have been trying to answer for years. Whenever they get close to solving the answer, congress makes the tax code a factor of 10 more complicated.

I have to make an assumption here. You are single. That is not your adjusted gross income. The standard deduction is $5350 and your personal deduction is $3400 for a total of $8750. If you itemize, this is going to be slightly incorrect. You will be at the top of the 15% incremental rate. A few more hundred and you will fall into the 25% rate. This is the rate on your non-long term gains and regular income and interest and non-qualifying dividends. Long term gains and qualifying dividends will be at a 5% rate. But I pitty you in trying to use the work sheet to figure that.

I do not see how you got 25% or 35% out of Turbo tax. The 35% rate applies to incomes over $349,700. The 25% rate applies to incomes over $31,850 (you are under that with your deductions)

Cheers.