Retail Forex traders fall under Section 988, which covers short-term foreign exchange contracts like spot Forex trades. Section 988 taxes Forex gains and losses like ordinary income.

In TurboTax, you enter Forex gains and losses as Other Reportable Income. A loss is entered as a negative number. Describe it as Forex loss (Section 988).

In TurboTax, open your return and follow these steps:

• Click on Federal Taxes, then on Wages and Income
• Under All Income, locate the Less Common Income section
• Click Show more and click Start next to Miscellaneous Income at the bottom
• On the next page, click Start next to Other Reportable Income (see attached screenshot).

Forex traders can declare whether they will report under the 988 Section or a 1256 Section.  The 1256 Section provides a 60/40 long term/short term breakout.  This is about a 305 savings.  Uncertain how to utilize Tubortax here for the 1256. 

Oops/  That is a 30% savings.

I also forgot that you use the 6781 Form to report both the losses and gains as reported on the 1099-B.