Last year was the first year I did a did a few OPTIONS trading. I got to the point in the Turbo Tax Interview where is asks if I have any 1256 Options Contracts ---- How would I know ?
Do brokers send you a Tax form (Like 1099) that identifies if you had 1256 Contracts ?
Options are section 1256 investments. If you traded options in 2022, you should answer YEs to this question.
Futures contracts are Section 1256 contracts for the IRS.
Please read this TurboTax article on how to report income on Section 1256 contracts.
You'll need to complete form 6781.
To do this in TurboTax, please follow these steps:
stock options are not 1256 contracts.
read the definition on the form 6781 instructions page 2 of the form
https://www.irs.gov/pub/irs-pdf/f6781.pdf