Prop firm tax guides

Plain-English answers for US funded traders, with the IRS sources linked. Figures are for the 2026 tax year.

• How prop firm payouts are taxedSelf-employment income, nothing withheld, and why a $5,000 payout can mean setting aside about $1,700.
• Quarterly estimated taxes for funded tradersThe 2026 due dates, the safe-harbor minimum, and the W-4 shortcut that covers the whole year.
• Deducting evaluation fees, resets and trading costsWhat counts as a trading cost, how much $500 of fees saves, and the records to keep.
• The 1099-NEC from your prop firmThe $2,000 threshold for 2026, when it arrives, and why the income counts even without one.

Estimates and general information, not tax advice. Confirm with a CPA before you act.