taxes, buying with credit card?

[Arthurdelt]

Hi,

I have cash and funds in paypal, but I don't have a savings account. I guess I can set one up real quick but I'd rather pay my credit card bill with cash to pay for stocks that I buy with a credit card. ok?

I want to buy about $600 of aliBABA's 1st day IPO in a couple weeks and I want $600 of QQQ.
I don't plan on trading anything else for at least a year except maybe 5 entries and 5 exists that I just might not to be able to resist because I still have a lot to learn. Please don't turn this into an anti BABA/QQQ lecture. But, in other words, I'm looking for which broker (Scottrade, etrade, thinkorswim etc) would give me the best deal on commissions etc if I only place these two buys for $600 each and then two more exit orders on thems in a year or so. And then maybe 5 other entries and 5 exits. BABA is NYSE QQQ is nasdaq, the 5 entries and exists might be OTC penny stocks, but if I should get another broker like suretrader to find shares for some of these OTCs/pennies, then I'll just go with whatever's best for just the BABA and QQQ long term entries.

So, about this tax thing, I think if I hold these for more than a year, I'm eligible to pay less % tax if I profit. But forgive me for asking such a seemingly simply question, but how do I go about paying taxes on these in plain English? Will they deduct them when I cash out and it's all done for me? I've never had to file taxes before. I know I can not write off tax deductible expenses like my computer etc because I'm not 'trading for a living...', but if I have to figure out the taxes all on my own or get a CPA, I imagine it would be simple for only two transactions, no? Will they send me a form asking me to do my taxes or do they not give me any notice and I have to do this I tax season or a certain time frame or something?

Thing is I'm unemployed right now off the books but I'm getting a 1099 job sometime this year. I'm off the obomacare radar until I file taxes (which will be required for the 1099 job within a year), then obomacare will fine me like $50 a year if I don't pay for obomacare.

If I buy stocks now and not sell them for a year, do I have to file taxes on them before I sell them? If I do sell them within this year, I guess it doesn't matter about the obomacare fine because I'll be filing my 1099 taxes anyway. Anyone get what I'm getting at and can help with that?
thanks

[aotvfdqd81]

You will receive a 1099 at the end of the year. Your tax liability can be calculated from that.
Thinkorswim and TDAmeritrade are the same thing. TDA bought TOS in 2008. If you create a TDA account through Dough.com you will receive a fee reduction from 9.99 per stock purchase and 3 per option lot down to 7 for stocks and 1.50 for options. Also you will receive free stock trades for a while. There are brokers that may be cheaper but in my opinion it isn't worth it when you compare the customer support, amazing trading platform and free training offered by TDA and Dough. Sometimes you can't afford cheap.

Also with TDA you can ask for a debit card and checks and your account can act just like a regular online bank account from which you can pay bills and use your card etc.

[Audreysn]

thank you!

so you're saying 'you will receive a 1099 at the end of the year', means January 2015? And I will only receive it if I sell shares, right? And if I buy stocks today and sell them in November, I will get the 1099 right after December? And then I have to pay them by I think april 15th is the deadline or is it april 15th 2016 I have to file by?

If it's 2016, then maybe I won't get the obama care fine until after that, or maybe I'll get it as soon as I sell something, but I'll have a 1099 job sometime within the next half a year or so anyway and will have ot figure something out about the obomacare fine/plan.

[Bitcroka]

If you have a funded brokerage account you will get a 1099 at the beginning of the year. Pretty sure you will get one whether you make a trade or not as most accounts give interest on the funds being held when not used.

[BradleyPt]

thank you! so if I invest today, then once 2015 comes around in January, they'll send me a 1099? And I have till when to file that, april 2015? They'll send me papers and I don't have to do anything to request the tax filing forms?