Is anyone here using TurboTax to report their futures trades? If so, what are you doing? Are you just putting in the final PnL as part of Section 1256 contracts and not reporting the indiviudal contracts?
I don't use Turbo Tax but for futures contracts you only need to report as a single figure as reported on a 1099 form. This is split 60/40 long term/short term. Individual listing of contracts is not required.
In Turbo Tax, if you put your U.S. futures/options total for the year first in the 1256, the blended capital gains are automatically computed and transferred to the appropriate income statement like a 1099. You may also have to pay self-employment tax. There might be a penalty for not paying estimated quarterly taxes. You can always do the Turbo Tax and pay an accountant for a billable hour to review it. Problem is, most accountants outside of Chicago or NYC are not familiar with proper accounting for trading incomes. Greene has a decent website for this (past threads here on ET).
I don't believe any capital gains, whether from stock, futures, forex, etc. are considered "earned" income. Therefore, no FICO or Medicare taxes should apply. What say others?
If you are a member of a futures exchange then all your futures trading profits are still capital gains reported on Form 6781 and are also subject to FICA tax. Nonmembers are not subject to FICA tax. The Medicare tax is one of the 2 components of the FICA tax.
For anyone who is using turbo tax this year and has this question follow these steps. 1) Go to the investment income section under the federal taxes tab. 2) Click contracts and straddles 3) If your like me you won't make any of the elections on the next page. 4) On the following page check the mark to market option. 5) The next page will ask you for your broker, account description, and your aggregate profit or loss. Enter your info and your done!