Funded Trader Tax Questions | Topstep Help Center (2024)

On 1/31/2024, Topstep sent 1099's to traders with United States citizenship who earned over $600 in payouts in 2023. 1099's will be sent via email. Make sure to check your spam folder if you meet the criteria to receive a 1099 form and have not received it.
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You will receive a 1099 from Topstep if you earned over $600 in payouts in 2023 AND are a United States citizen. You will not receive a 1099 or any tax documentation from Topstep if you are not a United States citizen OR you took less than $600 in payouts in 2023 (regardless of citizenship)
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If you have questions about your 2023 1099, please email

If you have US citizenship, you must fill out a W9. This is true even if you do not currently live in the US. Additionally, if you are a resident alien of the US, you must fill out a W9 regardless of your citizenship.

If you do not have US citizenship and are living outside of the US, you must fill out a W-8 BEN.

All traders are considered independent contractors, not employees.

Funded traders should report all earnings as regular income. Additionally, funded traders are only required to report the amount they have received as payouts.

For example, if a funded trader earns $5,000 in their account but only requests a $1,000 payout, they will have to report $1,000 worth of income.

No, traders can only set up a Funded Account as themselves (an individual). The good news is that traders can receive payouts and file taxes under a US-based single-person LLC. If a trader wishes to use their eligible business to receive payouts and file taxes, they still must use their personal information on the Funded Account® Agreement but they could enter the business' information on the bank information and tax forms.Topstep® cannot use receive payouts or file taxes under a C-corp, S-corp, or multiple-member LLC.

Traders that receive over $600 worth of payouts in a calendar year and have US citizenship will receive a 1099-NEC. during the following year. The amount of funds the trader received will be recorded on the 1099-NEC form as nonemployee compensation. We do not have to provide a 1099 form to anyone making less than $600 during a calendar year.

Traders without US citizenship will not receive a 1099 form from Topstep®. The 1099-NEC is only applicable for US/IRS reporting purposes and not for foreign reporting purposes. Topstep® is not obligated to provide any documents for reporting taxes to foreign governments.

Topstep® is unable to provide guidance regarding foreign tax reporting. We advise traders to report any earnings in accordance with their country’s local tax laws. We would also recommend that traders consult a tax or legal professional if they have any specific questions regarding their country’s tax standards.