K.A.I REVIEW
🇺🇸 Vietnamese traders in the US — tax, payouts and paperwork
This page is for Vietnamese traders LIVING IN THE US who trade funded accounts. English-language sites assume you are a US citizen and skip the resident-alien case; Vietnamese sites written from Vietnam cannot cover it. K.A.I is in the US, has been through each step, and every form below is sourced to the firms’ own help centres with the date checked.
⚖️Read first
K.A.I is NOT a tax professional and this page is NOT tax advice. It restates the firms’ published policies so you know what to ask about. Your situation depends on your residency status, your state and your other income — speak to a CPA or licensed preparer before you file.
01You are an independent contractor, not an employee
Topstep states: "You’re an independent contractor. Not an employee." Bulenox: "Funded traders are independent contractors responsible for filing their own taxes." Nothing is withheld for you — a payout arrives untaxed.
Set the tax aside yourself
There is no W-2 and nothing is held back. Many traders spend the whole payout and get a shock in April. Move a share aside the day it lands.
Report what you withdrew, not account profit
Topstep’s example: the account made $5,000 but you only requested $1,000 — you report $1,000. Unwithdrawn profit is not your income.
02Which form you file — the row English sites skip
This is Topstep’s own table, and the middle row is the one that matters here: a resident alien with an ITIN files a W-9, NOT a W-8BEN. Many people file W-8BEN by mistake because they are not citizens.
US citizen, anywhere in the world
W-9
Resident alien with an ITIN
W-9 — enter the ITIN in the SSN field. Topstep’s wording: "W-9 (enter ITIN in SSN field)".
Non-US citizen living outside the US
W-8BEN. Earn2Trade additionally requires a Foreign Tax Identifying Number (FTIN).
03The 1099 you will receive
US citizen, $600+ in payouts
A 1099-NEC. Topstep emailed 2025 forms on 31 Jan 2026. MyFundedFutures: paid through Rise, Rise sends it; paid by Plaid/ACH, MFF mails it to your registered address by 17 Feb 2026.
US citizen, under $600
No form from the firm. But no form does NOT mean no obligation — the income is still reportable.
Your mailing address must be current
The 1099 goes to the address on file — the firm’s, or Rise’s if you are paid through Rise. Move house without updating it and the form is lost. Fix it before January.
04The money trap: your 1099 shows more than you got
This quietly costs people money. Topstep: the IRS requires them to report the GROSS payout, before fees.
Topstep’s own example
Request $500 by ACH/Wire · $30 processing fee · you receive $470 · but the 1099-NEC says $500. They state the form will NOT be corrected.
What to do instead
Report the full $500 as income, then deduct the $30 processing fee as a business expense on Schedule C. Net taxable $470. This is Topstep’s own guidance — still run it past your preparer.
Pick a payout rail with no fee
Topstep notes Wise payouts carry no processing fee, so gross equals net and the mismatch never arises. Over many payouts the difference adds up.
05Can you trade under a company?
The account must be in your individual name
Topstep: funded accounts must be set up in your individual legal name. Use your personal details on the Funded Account Agreement.
A single-member LLC may receive the payouts
Topstep permits US single-member LLCs to receive payouts and file taxes: personal details on the agreement, LLC details on bank and tax forms. C-corps, S-corps and multi-member LLCs are not permitted.
Every firm sets its own rule
This is Topstep’s rule, not an industry standard. Other firms may forbid it outright. Ask support BEFORE forming an LLC for this purpose.
06Your name must match, or the payout bounces
This is the number one reason payouts bounce
The name on your funded account, your bank and your ID must all match. Vietnamese name order differs from the US convention, so this is where it breaks. K.A.I has a page on exactly how to write it — read it before you open the account; fixing it later is far harder.
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