88 thoughts on “Day Trading Taxes, IRS Trader Tax Status vs Investor Status in US

  1. cool vid! hope things have been going well for you

    quick question, from what i learned, the tax rates are applied a little differently than being in the 24% bracket and the government taking 24% of your 100k, i heard they take 10% of your first 9700, 12% of 39,475-9701, 22% of 84,200-39,476, then 24% of 100k-84201, so the taxes would be less than 24k. do you know anything about this? i think its called marginal tax brackets. thanks!

  2. Paying tax for trading income is good … means you had a good year and profits unlike many who lost their shirts and probably pants too. ( Naked Short LOL ) Like Button SMASHED/ DESTROYED

  3. The tax man gots his hand in the Lamborghini money cookie jar. 😂. Another informative video, appreciate the work behind the video. Also love the jokes. 👍🏼

  4. Great video. I thought maybe if I play this video to my tax account I will get the tax breaks and deductions you mentioned. Maybe your jokes will be the deal breaker. Okay maybe that is going to far.

  5. You should trade the Brazilian's market. For Day Trade 20%, for swing trade 15% (doesn't matter how long). All losses deductions without time to deduct. I'm in Canadá but I still do day trading in the Brazilian's market. And I like you, you're very funny as well.

  6. You are pretty much on point with the US tax laws but I use Credit Karma so it's very easy to file my taxes and it's free.

  7. not sure why people down vote the video though, cute girl with good infos. Probably they haven't received their lambo in the mail box yet. Mine comes broken as I return it to IRS

  8. hello Humbled trader, I saw your list of favorite books, and I wanted to ask you why do you believe that atomic habits could improve my trading and what do you think of scalping. Cheers

  9. Great video. Thanks! I was happy/surprised to hear your
    shout-out to Charlie at the end, using his "Ravishing" buzzword. It made me laugh. I really only follow YOU TWO on YOUTUBE for stock stuff. Thank you for all you do!!

  10. Hi humbled trader, thank u so much for sharing! I was just a little surprised that u have to pay IRS tax for capital gain as a Canadian resident. I am a European resident and I think I don’t have to pay tax for capital gain to IRS, my broker will hold 30% tax for dividend though.

  11. Keep in mind if u file for trader tax status u have to pay payroll tax which as u know is a waste of money. If u r an investor then u don't have payroll tax but u don't get to deduct certain expenses. The latter has been water down in the recent tax bill with lower taxes n higher std deduction levels. Also if u file for trader status it's hard to go back to investor status n keep the same style of trading.

  12. It’s terrible. Since I focus on a few things to trade there is a rule that you get hit by taxes when you make money but they do not take into account when you loose. So I ended up a little in the red one year and they said I made a few thousand. I had to pay taxes even though I lost money.

  13. Hi Humbled Trader, Very well researched and you make boring topic very fun to watch. For your next videos, I would like to find out if you could share if you ever ran into technical glitches (trading platform errors) that prevented you from buying/selling and how you overcame that. Did you read about the Fidelity glitch? https://www.marketwatch.com/story/some-fidelity-investors-are-finding-accounts-showing-no-401k-balances-or-retirement-plan-at-all-2020-02-19 What did you think of the incident? Did you ever experience something similar as you have been trading for many years!

  14. Do you pay for scanner subscriptions? Which ones do you recommend? Maybe you did a video on this already? I know you mentioned a couple of free ones.

  15. So here is how it goes in the Netherlands:
    You have income, and you have assets. Actual income, that is from your job(s), is taxed anywhere between around 37 to around 52%, depending on how much you make. But fret not. Because everything you do on the stock market is counted in your "assets" section, or, "Savings and Investments". Yes, according to some lawsuit somewhere in 2011 or 2013, EVEN DAYTRADING!! The first 30k Euros of assets or so are free, you don't pay anything on that. After that, it does get a little bit complicated, but actually, it's not.
    The Dutch IRS assumes, that you are able to get a certain percentage of returns from your accumulated wealth, the more money you have, the higher your returns are, they argue.
    Quite logical, to be honest.
    So how does it work? Remember, the first 30K Euro's are free, you don't pay anything.
    If you have more than that in total wealth accumulated, up to ~73k Euro's, they assume you get a 1.8 % return on that money each year.
    Up to 1.005 million, they assume you will be able to get 4.2% yearly returns.
    Above that, you are supposed to be a financial genius and get 5.33% return on your savings.
    But how much tax do you pay for that, you may ask.
    Right. The answer is: 30%. Yes. Thirty PERCENT!!! But the good news: you only pay that tax on the assumed returns. So for example, you have a huge stack of Lambo money lying around, let's say 750k on your bank account, brokerage accounts, investment portfolio, whatever. They assume you get about 4.2% returns, that is about 31,5k. And of that amount, you pay 30% taxes. Which comes down to about 9,5k, or, 0.54% on the WHOLE STACK OF CASH!!!

    I do have a couch available at my appartement in the Netherlands. I am charging 100 Euros a night. Come over, become registered citizen of the Netherlands, pay taxes here, save tons of money.
    Hit me up.

    (laughs in Dutch)

  16. Did I understand you correctly? If I made less than 37000$ as an investor by day trading I don’t owe anything for IRS? But do I owe any state tax? Thanks

  17. I pay a Certified Public Accountant (CPA) to do my taxes, because I rent property and tax laws change, and I have moved around (to different states) a few time lately, this is the first year I’m actually going to be a trader as a source of income, I’m sell out of my rental property because real estate prices have peaked and my taxes will be huge.

  18. Always enjoy your videos. You are humorous and keep the discussion light but, smart. Nothing like a smart and gorgeous woman to hold your attention.

  19. I don’t pay taxes for any of my day trading. Because I only lose. That’s the benefit of being a losing trader. No other benefits unfortunately.

  20. Thank you very much for this video, it will certainly help many individuals that do their own taxes. Keep up the great work, thanks for your time, and considerations!


  22. I am new to your channel. I really appreciate your awesome input and the amount of genius time you spent with all of us. Wow, I can't wait to check out your other videos I am kind of new to trading started 2yrs ago and you are very helpful young lady. Xie Xie. Love Canada BTW it's a beautiful country…:)

  23. That covers the federal tax, but people in the US should not forget to check your state tax laws as well. Some states have a trader preference tax status, though most do not.

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