I never had to pay such a high percentage in my life but now trading income has gotten to a point that it is impacting things and I had to even write a 19K check to the IRS. (in addition to quarterly payments) total about 106K for 2013 Is there a way to cut this? how do rich people do this? I keep hearing that they only pay 15-20% The problem is everything I make in trading is short term gains. Does it make sense to make a Corporation and pay yourself only a salary for what you need for living expenses or less and keep the rest in? Anyone have any ideas on how to structure things to minimize taxes. Any books or websites that could help?
Your percentage seems high to me unless you are making serious coin. I have trader status and can write off business expenses. If you have a self proprietor business then you don't pay self-employment tax because your income is not considered earned income (of course you can't contribute to a retirement account either). If I were you I would file for an extension and contact Green Trader Tax about your options. Or if you prefer doing things yourself, purchase the Green Trader Tax guide and see if you can lower your tax rate. That being said, it is a little late in the game to be taking action now. It is possible that for this year you are "stuck." Good luck.
+1 OP should contact GT, they will be able to advise you properly... and the idea would be to lower and minimize your tax by ensuring you can write off expenses... which can be many... and there are many creative ways to get that done if you are a business... so keep that in mind..