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POLL: 28% of Americans bought GameStop or other viral stocks in January

If you're new to investing in stocks, you will need to remember tax obligations when you file.

NORFOLK, Va. — It all happened in a matter of days.

After retail gaming company GameStop saw its stock value jump 1200 percent, more people rushed to get in on the investment.

According to a new Yahoo Finance/The Harris Poll, 28 percent of Americans bought GameStop or other viral stocks in January.

That means there are a lot of new investors, like David Tippett in Virginia Beach.

“I am very green,” said Tippett.

Tippett invested in Blackberry, another shorted stock like GameStop. While a lot of people are making money right now, including Tippett, there is one thing they may not be thinking about: tax season.

“I don’t want big brother IRS knocking on my door,” said Tippett.

When you make money from selling a stock, you have to pay taxes on the profit. They’re called capital gains.

If you’ve owned the stock for less than a year, the tax rate will be higher. If it’s been longer than a year then it’s going to be lower; you’ll need to factor that in when you go to file.

Form 1099 is something you’ll need to become more familiar with, although most online tax-filing sites will guide you through the process.

If you just started trading stocks in 2021 and sold for profit, remember that will affect next year’s taxes, so you have plenty of time to start planning.

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