Simple tax question US

April 13th, 2021, 12:37 AM

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!

April 14th, 2021, 07:47 PM

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

April 14th, 2021, 08:21 PM

ahelton

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.

April 14th, 2021, 08:24 PM

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

April 14th, 2021, 08:34 PM

ahelton

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.

April 14th, 2021, 08:37 PM

snax

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

April 14th, 2021, 08:41 PM

ahelton

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!

April 17th, 2021, 06:46 PM

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.

April 18th, 2021, 04:14 AM

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

The Tax Thread

I thought we could use a thread devoted to Taxes. This is all things taxes regarding trading.

One example, Advantages/disadvantages for different situations (equities, futures, forex, etc) as well as benefits of filing sole-proprietor vs LLC or as a …

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

Simple tax question US

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Simple tax question US