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Simple tax question US


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Simple tax question US

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  #1 (permalink)
yyea7633
San Diego
 
 
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Do you have to pay your tax quarterly or yearly in the US for trading the futures?

What if I get paid from prop firm like Topstep, do you pay the tax yearly?

Thanks!


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  #2 (permalink)
ahelton
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The real question is if you get paid on a 1099. I do that on LeeLoo and I would assume Top Step does it the same way.
If you make your income on a 1099, then yes you pay your taxes quarterly

 
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 snax 
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ahelton View Post
The real question is if you get paid on a 1099. I do that on LeeLoo and I would assume Top Step does it the same way.
If you make your income on a 1099, then yes you pay your taxes quarterly

I'm not sure I understand the quarterly tax you're referring to. I get a single 1099B from my broker for the entire year.

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  #4 (permalink)
ahelton
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Well yes you get the 1099 for the year.
But the IRS wants you to actually pay your taxes quarterly. I think if you make over something like $600 a year then you have to pay it but I'm not 100% sure on that cut off level

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 snax 
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ahelton View Post
Well yes you get the 1099 for the year.
But the IRS wants you to actually pay your taxes quarterly. I think if you make over something like $600 a year then you have to pay it but I'm not 100% sure on that cut off level

Ahh, like someone who is self-employed. Good to know, I will research that. Definitely did not make profits last year.

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ahelton
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snax View Post
Ahh, like someone who is self-employed. Good to know, I will research that. Definitely did not make profits last year.

Yeah I had no about it either when I started, luckily another trader explained it to me. good thing because if you don't realize that you'll have to pay all kind of penalties later on.
You basically have to run it like you're own business, project how much you'll make for the year, expenses, etc. Fun stuff

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 snax 
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ahelton View Post
Yeah I had no about it either when I started, luckily another trader explained it to me. good thing because if you don't realize that you'll have to pay all kind of penalties later on.
You basically have to run it like you're own business, project how much you'll make for the year, expenses, etc. Fun stuff

Thanks for sharing, yes just one more thing I needed to learn!

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 SMCJB 
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FYI I believe that there is a rule that if the tax you paid this year is 110% of your tax assessment from last year than you can not be penalized.

 
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 xplorer 
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Guys, there's already a tax thread, at this URL







Closing this to prevent a split topic and keep FIO organized.

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