☝️ Important: Topstep can't give tax advice. What we can do is tell you exactly what forms we send, what you're responsible for, and how your 1099-NEC works.
2025 1099s
Topstep sent 2025 1099s on January 31, 2026, via email to US citizens who received over $600 in Payouts in 2025.
Not a US citizen, or under $600 in Payouts? No 1099 from Topstep.
Check your spam folder if you qualify and haven't received one.
Questions? Email 1099support@topstep.com.
What Tax Forms Do You Need to Complete?
Situation | Form |
US citizen (anywhere in the world) | W-9 |
Resident alien with ITIN | W-9 (enter ITIN in SSN field) |
Non-US citizen living outside the US | W-8 BEN |
How to Report Your Earnings
Report your Payout amounts as regular income — only the amount you actually received.
Example: If your Funded Account earned $5,000 but you only requested a $1,000 Payout, you report $1,000.
👉 Clarification: Are You an Employee of Topstep? No. All Traders are independent contractors.
Can You Open a Funded Account Under a Business?
No. Funded Accounts must be set up in your individual legal name.
However, US-based single-member LLCs may receive Payouts and file taxes under the LLC:
Use your personal info on the Funded Account Agreement
Use your LLC info on bank and tax forms
Not permitted: C-corps, S-corps, or multi-member LLCs.
What Tax Forms Will You Receive?
Situation | Form |
US citizen, $600+ in Payouts | 1099-NEC |
US citizen, under $600 | No form from Topstep |
Non-US citizen | No form from Topstep |
Why Your 1099-NEC May Show More Than You Received
The IRS requires Topstep to report your gross Payout amount, before any fees.
Example:
You request a $500 Payout via ACH/Wire
A $30 processing fee applies
You receive $470
Your 1099-NEC shows $500
This is correct and IRS-compliant. Your 1099-NEC will not be corrected.
How to deduct the fee if you're self-employed:
Report the full $500 from your 1099-NEC as income.
Deduct the $30 processing fee as a business expense on Schedule C.
Net taxable income = $470.
Note: Wise Payouts have no processing fee — gross and net amounts are the same.
Common Questions
Was I overreported to the IRS?
Was I overreported to the IRS?
No. The IRS requires payers to report the gross amount before fees. Your income was reported correctly.
Can you issue a corrected 1099-NEC for the net amount?
Can you issue a corrected 1099-NEC for the net amount?
No. The $30 is a processing fee, not a reduction of income. The 1099-NEC must reflect the gross amount
Why doesn't Wise have this issue?
Why doesn't Wise have this issue?
Wise Payouts have no processing fee — gross and net amounts are the same.
International Traders
Topstep cannot offer guidance on foreign tax reporting. Report your earnings per your country's local tax laws. Consult a tax or legal professional for country-specific questions.
Important Disclaimer: This article is for informational purposes only and is not tax advice. Consult a qualified tax professional for your specific situation.