Income from option trading

[Yellowhouse-8]

I just started trading options and am hoping to make some money.  I assume this will be reported with a 1099-B from Chas Schwab.  Will Turbo Tax walk me through how I report any premiums I make?  Thanks.

[DOlli_EA]

Open market options

If you buy or sell a stock option in the open market, the taxation rules are similar to options you receive from an employer. When you buy an open-market option, you're not responsible for reporting any information on your tax return.

However, when you sell an option—or the stock you acquired by exercising the option—you must report the profit or loss on Schedule D of your Form 1040.

• If you've held the stock or option for less than one year, your sale will result in a short-term gain or loss, which will either add to or reduce your ordinary income.
• Options sold after a one year or longer holding period are considered long-term capital gains or losses.

When you use TurboTax to prepare your taxes, we’ll do these calculations and fill in all the right forms for you. We can even directly import stock transactions from many brokerages and financial institutions, right into your tax return.

Source: https://turbotax.intuit.com/tax-tips/investments-and-taxes/how-to-report-stock-options-on-your-tax-r...