I have losses in day trade, which I know can be claimed on section 988, but when doing so, my earned income isn’t decreasing.Oppose to when claiming losses for a business

[youssefelramy]

1st question: why? if section 988 is considered as a ordinary income, it will be taken out from my earnings and I’ll be eligible for EIC
2nd question: in this case, is it possible/legit to claim those losses on a schedule C, so included with my self employment?

[Anonymous_]

See https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-do-i-report-secti...

[Mike9241]

988 gains/losses are not earned income.

see these links for more info

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-do-i-report-secti... 

https://www.taxact.com/support/14244/2020/irc-section-988-cash-forex-foreign-currency-transactions#:...