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Decide Your Filing Status

Determine your tax filing status as either an options and futures trader or an over-the-counter trader. Options and futures traders are typically career traders that operate with consistently high net profits. They receive a tax break on their gains and profits that are over 12 percent. Alternatively, over-the-counter traders receive a tax break on losses.

Report Your Income

Report your options and futures trading income on IRS Form 1040 under your capital gains and losses. If you file your taxes as an over-the-counter Forex trader, report your income as "other income" on IRS Form 1040.Read more here http://alpari.com/

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