No need to worry! Although the withholding of 28% on gross proceeds does seem ridiculous, it is not the ACTUAL tax that you will be paying when you file 1040 at year end. Fill out your schedule D of the 1040 correctly - gross proceeds, cost, date of purchase, date sold, etc. Your gain is a short-term capital gain and the tax is calculated by taking your marginal tax rate, multiplied by gain on sale of stock. However, do not forget to include the tax withholding on the stock transaction to get a refund.