https://ttlc.intuit.com/community/taxes/discussion/re-nadex-trading-binary-options/01/3103812#M1138628 <P>Hello&nbsp;htrumbo2,&nbsp;</P> <P>Thank you for joining us today !</P> <P>The IRS is treating Nadax Options as Section 1256 investments and Straddles and to be reported on Form 6781.&nbsp; <BR />According the the <A href="https://www.nadex.com/learning/how-does-nadex-provide-income-tax-related-information/" target="_self">Nadex Website</A>, you should receive a 1099-B Annually to assist you in reporting your sales, etc.&nbsp; <BR />For tax purposes, every Section 1256 gain or loss is treated as being 60% long term and 40% short term, no matter how long own it.&nbsp;&nbsp;</P> <P>This TurboTax article on <A href="https://turbotax.intuit.com/tax-tips/investments-and-taxes/what-is-form-6781-gains-and-losses-from-section-1256-contracts-and-straddles/L2rfcJXT9" target="_self">Section 1256 Contracts &amp; Straddles</A> will go into further explanation.<BR />Good luck in your future trading!</P> Wed, 25 Oct 2023 17:35:03 GMT Holly W 2023-10-25T17:35:03Z https://ttlc.intuit.com/community/taxes/discussion/nadex-trading-binary-options/01/3103374#M1138627 <P>Is the income from trading Nadex binary options taxed at ordinary income levels.</P> Tue, 24 Feb 2026 07:37:45 GMT https://ttlc.intuit.com/community/taxes/discussion/nadex-trading-binary-options/01/3103374#M1138627 htrumbo2 2026-02-24T07:37:45Z https://ttlc.intuit.com/community/taxes/discussion/re-nadex-trading-binary-options/01/3103812#M1138628 <P>Hello&nbsp;htrumbo2,&nbsp;</P> <P>Thank you for joining us today !</P> <P>The IRS is treating Nadax Options as Section 1256 investments and Straddles and to be reported on Form 6781.&nbsp; <BR />According the the <A href="https://www.nadex.com/learning/how-does-nadex-provide-income-tax-related-information/" target="_self">Nadex Website</A>, you should receive a 1099-B Annually to assist you in reporting your sales, etc.&nbsp; <BR />For tax purposes, every Section 1256 gain or loss is treated as being 60% long term and 40% short term, no matter how long own it.&nbsp;&nbsp;</P> <P>This TurboTax article on <A href="https://turbotax.intuit.com/tax-tips/investments-and-taxes/what-is-form-6781-gains-and-losses-from-section-1256-contracts-and-straddles/L2rfcJXT9" target="_self">Section 1256 Contracts &amp; Straddles</A> will go into further explanation.<BR />Good luck in your future trading!</P> Wed, 25 Oct 2023 17:35:03 GMT https://ttlc.intuit.com/community/taxes/discussion/re-nadex-trading-binary-options/01/3103812#M1138628 Holly W 2023-10-25T17:35:03Z