If I am W2'd getting paid a salary of 2k per month (which is actually a draw - just stated as a salary for exchange rules - not quite sure on the exact reason why) and we are paid on a 50/50 split with payouts being quarterly bonus, how exactly does taxes play out? First, I know that I'm taxed on the 2k as ordinary income (which sucks because its treated as a draw and I have to make the entire 2k back in trading profits) and then the quarterly bonuses are taxed including SS, Medicare, etc. at around 38%. So does that mean I am basically working for about 1.6k in salary and a 12% cut of the profits after taxes? How much would being 1099 and falling under the 60/40 rule (since I solely trade futures) be an advantage? Thanks.