TAXES

Taxes & Legal

How funded-account payouts are typically treated for tax purposes, and the legal status of the trader-firm relationship.

How Is Prop Trading Income Taxed in the US?

How Is Prop Trading Income Taxed in the US?

A general overview of how funded-account payouts are typically treated for US tax purposes, and why the trader-firm relationship matters for reporting.

Are Prop Firm Payouts Considered Self-Employment Income?

Are Prop Firm Payouts Considered Self-Employment Income?

Why most funded-trader payouts are treated as self-employment or business income rather than wages, and what that means for reporting obligations.