Prop firm taxes for non-US traders: the US side

Why US futures prop firms ask for Form W-8BEN, what the IRS source rule says, and what stays with your home country.

US persons give: Form W-9
Foreign individuals give: Form W-8BEN
IRS source rule for services: Where performed

Firm statements and IRS pages checked on October 10, 2026 · By helloweekends Editors

Prop firm taxes for non-US traders start with one question: are you a US person for tax purposes? If not, US futures prop firms such as Topstep ask for Form W-8BEN instead of Form W-9. The IRS says nonresident aliens are generally taxed only on US-source income, and that pay for personal services is sourced where the work is performed. Your home country's rules decide the rest.

Not tax adviceThis is general information about US federal forms, not tax advice. It does not cover any other country's tax law. How your payouts are classified depends on your firm's agreement and your own situation. Talk to a tax professional where you live.

What firms say about non-US traders

A prop firm evaluation is a paid service with simulated trading, and payouts come from the firm under its own agreement. Three of the futures firms we track state on their official pages what they ask of traders outside the US. Checked on October 10, 2026.

Firms whose official pages state their tax-form handling for non-US traders. Alphabetical. Checked October 10, 2026.
Firm	What its official pages say	Source
Apex Trader Funding	Members who indicated they are not US taxpayers (W-8 status) do not receive a US 1099 and are responsible for reporting Apex income under the laws of their country	Apex help center
FundedNext Futures	Only US citizens and US residents submit Form W-9; non-US traders submit no tax forms and receive no tax documents	FundedNext help
Topstep	Form W-9 for US persons, Form W-8BEN for non-US persons, submitted as part of the payout request	Topstep payout policy

Firms change these processes. Check your own firm's current help pages before your first payout request.

Step 1: Check whether you are a US person

For US tax, a US person includes a US citizen and a US resident. The IRS says someone who is not a US citizen is a nonresident unless they meet the green card test or the substantial presence test for the calendar year. You can be a nonresident and a resident in the same year, usually the year you arrive in or leave the United States.

A US citizen living abroad is still a US person. The IRS says US citizens, even those living outside the United States, use Form W-9, not Form W-8BEN. For that case, see how to file prop firm taxes.

Step 2: Give the firm Form W-8BEN when it asks

Form W-8BEN is the certificate a foreign individual gives a payer to establish that they are not a US person. The IRS says to give it when the payer asks, whether or not you claim a reduced rate of, or exemption from, withholding. A foreign company uses Form W-8BEN-E instead.

How long it lasts. Generally from the date you sign it to the last day of the third calendar year after that. The IRS example: a form signed on September 30, 2015 stays valid through December 31, 2018.
When it stops being right. If a change makes the form incorrect, you notify the payer within 30 days and give a new form. A move to a US address is such a change.
When it is the wrong form. The IRS says not to use W-8BEN to claim exemption on pay for services performed in the United States (Form 8233 or W-4 is used instead), or for income connected with a US trade or business (Form W-8ECI).

Step 3: Know where the income is sourced

The IRS says a nonresident alien is generally subject to US income tax only on income from US sources and on certain income connected with a US trade or business. Most US-source income paid to a foreign person that is not connected with a US business is taxed at 30%, unless a lower rate or exemption applies under the tax code or a tax treaty.

The source depends on the type of income. In the IRS summary, salaries, wages, other compensation and business income from personal services are sourced where the services are performed. Firms that report US traders' payouts on Form 1099-NEC treat them as pay for services. Whether that applies to your payouts, and where your work counts as performed, is a question for a tax professional.

Step 4: Report under your home country's rules

A firm that issues no US tax form is not telling you the income is untaxed. Apex says members with W-8 status are responsible for reporting its income under the laws of their country or jurisdiction. This page does not cover any country's rules; ask a local tax professional how payouts are treated where you live.

Before your first payout

Read your firm's payout policy for the tax form it needs and when it asks for it.
Record every payout: date, amount, currency received and firm. Keep the payment provider's statements too.
Keep a copy of the W-8BEN you signed and the date, so you know when it needs renewing.
Tell the firm within 30 days if you move to the United States or your status changes.

For how payouts are earned and capped, see the funded account guide and the payout pages of each firm in our futures prop firms list.

Know the riskA prop firm evaluation is a paid service with simulated trading. Most people who buy one do not pass it, and firms change their rules, pause payouts and close. This page is general information, not tax or investment advice.

Questions

Do non-US traders pay US tax on prop firm payouts?

The IRS says a nonresident alien is generally taxed only on US-source income and on income connected with a US trade or business. For personal services, the source is where the services are performed. How your payouts are classified depends on your firm's agreement and your situation. This is general information, not tax advice.

What is Form W-8BEN?

It is the IRS form a foreign individual gives a payer to certify that they are not a US person. The IRS says to submit it when the payer asks, whether or not you claim a reduced rate of, or exemption from, withholding.

Do prop firms send a 1099 to non-US traders?

Apex Trader Funding says members with W-8 status do not receive a US 1099, and FundedNext says it issues no tax documents to non-US traders. Ask your own firm what it issues.

How long is a W-8BEN valid?

Generally from the date you sign it to the last day of the third calendar year after that, unless a change in circumstances makes the form incorrect. Then you notify the payer within 30 days and give a new form.

I am a US citizen living abroad. Do I use W-8BEN?

No. The IRS says US citizens, even those living outside the United States, and other US persons use Form W-9 instead. Our US tax guide covers that case.

Sources

All checked on October 10, 2026.