2

I have been trading forex (outside the US) for some time. I withdraw profits using Skrill and then transfer funds to my bank account.

I will be moving to the US shortly. Can I use the same mechanism in the US to transfer funds to a US bank account?

Are there any separate regulations for forex trading in US? Must I pay taxes for forex trading in US? If yes, how?

2

Yes, you are required by law to pay taxes on any realized gains (net of losses) for any given year. If you're a US citizen, regardless of where you live internationally, you are still required. You'll pay taxes when you file your annual taxes by April 15th of the year following.

Separately, check with your broker also because many of them do not allow trading from the US, or alternatively, will require you to open a US-based account. With something like this, you don't ever want to give a broker a reason to freeze your account.

  • If subject to US income tax (as you correctly say either US citizen living anywhere or alien resident in US, and income over standard deduction plus exemptions for your status) you must file; if your tax will be more than $1000 you must pay 90% during the year with only the last bit when you file next April. For most people this is done by employer withholding from your paycheck, but people with significant non-withheld taxable income must make estimated payments; start at irs.gov/Businesses/Small-Businesses-&-Self-Employed/… . – dave_thompson_085 Dec 31 '15 at 15:46
  • Agree with @dave_thompson_085, but want to add that the "must pay 90% during the year" is theoretical. If you don't pay it, you simply pay a small fine when you do. In my personal case, paying the fine is cheaper than taking the time to pay quarterly. – alyehoud Dec 31 '15 at 15:59

protected by Chris W. Rea Feb 19 at 14:32

Thank you for your interest in this question. Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).

Would you like to answer one of these unanswered questions instead?

Not the answer you're looking for? Browse other questions tagged or ask your own question.