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How do I pay income tax on ForEx earnings?

Question by aa: How do I pay income tax on ForEx earnings?
This is my first time for paying income tax on ForEx, being a US citizen i believe i have to pay tax on forexfactory calendar income, but i have no clue what do i have to do for that. Thanks for your help.

Best answer:

Answer by tyler
Normally you need to file them as capital gains or losses (like you would with stocks or options).

But you can make a special election that will allow you to split them as 60% long terms capital gains and 40% regular income, which is advantageous for tax purposes since long term capital gains rates are lower.

http://www.onlineforextrading.com/learn-trading/forex-taxes

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Tags: earnings, Forex, Income