If you have US citizenship, you must fill out a W9. This is true even if you do not currently live in the US. Additionally, if you are a resident alien of the US you must fill out a W9 regardless of your citizenship.
If you do not have US citizenship and are living outside of the US, you must fill out a W-8 BEN.
Will I be considered an employee of TopstepTrader®?
All traders are considered independent contractors, not employees.
How should I report my earnings from TopstepTrader®?
Funded traders should report all earnings as regular income. Additionally, funded traders are only required to report the amount they have received as withdrawals.
For example: a funded trader that earns $5,000 in their account but only withdraws $1,000 would have to report $1,000 worth of income.
Can I open a Funded Account® under a business or company?
Traders can only set up a Funded Account® under a single-person LLC. TopstepTrader® cannot set up a Funded Account® under a C-corp, S-corp, or multiple-member LLC. If a trader wishes to set up a Funded Account® using an eligible business, they still must use their personal information on the Funded Account® Agreement. They can then enter their business information on the tax form. Traders that choose to go this route can take their withdrawals through the business.
What forms will I receive at the end of the year?
Traders that receive over $600 worth of withdrawals in a calendar year and have US citizenship will receive a 1099-Misc. during the following year. We do not have to provide a 1099 form to anyone making less than $600 during a calendar year.
Traders without US citizenship will not receive a 1099 form from TopstepTrader®. The 1099-Misc. is only applicable for US/IRS reporting purposes and not for foreign reporting purposes. TopstepTrader® is not obligated to provide any documents for reporting taxes to foreign governments.
How should I report my earnings to a country besides the US?
TopstepTrader® is unable to provide guidance regarding foreign tax reporting. We advise traders to report any earnings in accordance with their country’s local tax laws. We would also recommend that traders consult a tax or legal professional if they have any specific questions regarding their country’s tax standards.