Income tax

[pipstranger]

This is my first time paying income tax on Forex, being a US citizen i believe i have to pay tax on forex income, but i have no clue what do i have to do for that. Thanks for your help.

[davidfx]

Normally you need to file them as capital gains or losses (like you would with stocks or options).

But you can make a special election that will allow you to split them as 60% long terms capital gains and 40% regular income, which is advantageous for tax purposes since long term capital gains rates are lower.

[nadine]

You should have received a 1099 from your broker. It'll show your capital gains or losses. When in doubt, ask an accountant or other tax professional.