Will The IRS Deny Tax Benefits To Traders Due To Covid? And, Quarterly Estimated Taxes

02 Oct

Oct 02, 2020 at 12:00 pm EST


As the virus spread in the U.S, millions of displaced Americans turned to trading in financial markets. Some even became active enough to qualify for trader tax status (TTS) benefits. However, will the IRS deny TTS to Covid-19 traders if they only carry on a trading business for a short period of time?

Many new traders have substantial trading gains for 2020 YTD, and they might owe 2020 estimated taxes paid to the IRS quarterly. Unlike wages, taxes aren’t withheld from trading gains. Others can wait on tax payments until April 15, 2021, when they file their 2020 tax return or extension.

Join Robert A. Green, CPA, of GreenTraderTax.com as he discusses these matters.

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