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Updated over a week ago
2023 1099's
What tax forms do I need to complete?
Will I be considered an employee of Topstep?
How should I report my earnings from Topstep?
Can I open a Funded Account under a business or company?
What forms will I receive at the end of the year?
How should I report my earnings to a country besides the US?
2023 1099's
On 1/31/2024, Topstep sent 1099's to traders with United States citizenship who earned over $600 in payouts in 2023. 1099's will be sent via email. Make sure to check your spam folder if you meet the criteria to receive a 1099 form and have not received it.
You will receive a 1099 from Topstep if you earned over $600 in payouts in 2023 AND are a United States citizen. You will not receive a 1099 or any tax documentation from Topstep if you are not a United States citizen OR you took less than $600 in payouts in 2023 (regardless of citizenship)
If you have questions about your 2023 1099, please email
1099support@topsteptrader.com.
What tax forms do I need to complete?
The tax forms you need to complete depend on your location.
If you have US citizenship, you must fill out a W9. This is true even if you do not currently live in the US. Additionally, if you are a resident alien of the US, you must fill out a W9 regardless of your citizenship.
If you do not have US citizenship and are living outside of the US, you must fill out a W-8 BEN.
Will I be considered an employee of Topstep?
No, you will not be considered an employee of Topstep. All traders are considered independent contractors.
How should I report my earnings from Topstep?
Funded traders should report earnings as regular income.
Funded traders are only required to report the amount they have received as payouts. For example, if you earn $5,000 in your funded account but only request a $1,000 payout, you will have to report $1,000 worth of income.
Can I open a Funded Account under a business or company?
No, you cannot open a Funded Account under a business or company. Traders can only set up a Funded Account as themselves (an individual) using their legal first and last name.
Even though traders cannot set up a Funded Account under a business, traders are permitted to receive Payouts and file taxes under a US-based single-member LLC.
If you want to use a single-member LLC, Topstep will create your Express Funded Account or Live Funded Account using your personal information. You can then complete your tax documents for the account with your single-member LLC information.
If you want to use your eligible business to receive payouts and file taxes, you must use your personal information (legal first and last name, etc) on the Funded Account Agreement
You can enter your business information on the bank information and tax forms. Topstep traders are not permitted to receive payouts or file taxes under a C-corp, S-corp, or multiple-member LLC.
What tax forms will I receive at the end of the year?
The tax forms you receive at the end of the year will depend on your citizenship.
If you have US citizenship and received over $600 worth of payouts in a calendar year, you will receive a 1099-NEC form the following year. The amount of funds you received will be recorded on the 1099-NEC form as nonemployee compensation.
Topstep does not have to provide a 1099 form to anyone making less than $600 during a calendar year.
If you do not have US citizenship, you will not receive a 1099 form from Topstep. The 1099-NEC is only applicable for United States tax reporting purposes and not for reporting in other countries.
Topstep is not obligated to provide any documents for reporting taxes to governments outside of the United States.
How should I report my earnings to a country outside of the United States?
If you want to know how to report your earnings to a country outside of the United States, it's important to know that Topstep cannot offer any guidance or advice for foreign tax reporting.
We advise traders to report any earnings per your country’s local tax laws. We also recommend that traders consult a tax or legal professional if they have any specific questions regarding their country’s tax standards.
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