Sell a stock? You may not owe tax, depending on your income

— -- Q: I sold stock that I held more than 10 years. Do I need to pay tax on the gain?

A: Just because you own a stock for a decade doesn't mean you can avoid Uncle Sam.

When you own a stock for a year or less, you must pay tax on any gains at your ordinary income rate. But if you own a stock more than a year, you qualify for lower, long-term capital gains tax rates. These rates are generally lower than ordinary tax rates.

However, the maximum ordinary tax rate can vary based on your income and other factors. For instance, if you're in the 10% or 15% income tax bracket, gains on stock held more than a year are not taxed in 2008, says Bankrate.com. You must have less than $65,1000 in taxable income as a couple and less than $32,550 as a single taxpayer to qualify for the zero capital gains tax, Bankrate.com says. You can read more here.

For other investors, the capital gains tax rate on stocks owned more than a year is 15%. You'll need to determine your income to know how your gain will be taxed.

Matt Krantz is a financial markets reporter at USA TODAY and author of Investing Online for Dummies. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com. Click here to see previous Ask Matt columns.