Should you report your tax return as a "trader"? That's what I and probably many other traders would like to know. I found the following web page that I think has very good information on filing your return as trader status: http://www.fairmark.com/traders/intro.htm 11 pages. Go through them. Very informative I think. It also has references to the IRS's publications on trader taxation. Do you qualify to be considered a "trader" in the eyes of IRS? As a trader, you would have the benefit of deducting many more expenses than if you are an investor, and not subject to the 2% floor in Schedule A. And they said (seems rather strange but it is the way you do it): - File Schedule C to claim all the business expenses. But leave the income as 0. This will show your business has a loss, which will offset your ordinary income, and since you have no income from your Schedule C, you don't need to pay self-employment tax. Only if you elect not to have the "Mark to Market" election. If you elect "Mark to Market", your trading gain will be treated as ordinary income. - File all your trading gains in Schedule D as capital gain.