topic I have losses in day trade, which I know can be claimed on section 988, but when doing so, my earned income isn’t decreasing.Oppose to when claiming losses for a business in Business & farm

I have losses in day trade, which I know can be claimed on section 988, but when doing so, my earned income isn’t decreasing.Oppose to when claiming losses for a business

youssefelramy — Mon, 23 Feb 2026 10:47:49 GMT

1st question: why? if section 988 is considered as a ordinary income, it will be taken out from my earnings and I’ll be eligible for EIC
2nd question: in this case, is it possible/legit to claim those losses on a schedule C, so included with my self employment?

Re: I have losses in day trade, which I know can be claimed on section 988, but when doing so, my earned income isn’t decreasing.Oppose to when claiming losses for a business

Anonymous_ — Tue, 17 Jan 2023 01:34:52 GMT

See https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-do-i-report-section-988-forex-trading-losses/00/32959

Re: I have losses in day trade, which I know can be claimed on section 988, but when doing so, my earned income isn’t decreasing.Oppose to when claiming losses for a business

Mike9241 — Tue, 17 Jan 2023 01:38:42 GMT

988 gains/losses are not earned income.

see these links for more info

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-do-i-report-section-988-forex-trading-losses/00/32959

https://www.taxact.com/support/14244/2020/irc-section-988-cash-forex-foreign-currency-transactions#:~:text=On%20the%20second%20screen%20titled%20Form%206781%20-,any%20additional%20information%20as%20needed%2C%20then%20click%20Continue.