Foreign exchange (Forex) traders fall under Section 988, which covers short-term foreign exchange contracts like spot Forex trades.
Forex gains and losses are reported on your tax return as Other Income. Report a loss as a negative number.
To report your Forex loss, please follow these steps:
- Click on Federal Taxes (left menu) then on Wages & Income/Income & Expenses (up top)
- Under All Income, locate the Less Common Income section
- Click Show more and click Start next to Miscellaneous Income, 1099-A, 1099-C at the bottom
- Click Start next to Other Reportable Income
- Describe the amount as Section 988 Forex gain or loss (enter a negative number for a loss)
Foreign Exchange Reporting Discussion
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