How to Report Foreign Income. If you are a U.S. citizen or U.S. resident alien, you report your foreign income on your tax return where you report your U.S. income. That is, on line 1 of IRS Form 1040.
Day trading can significantly impact your taxes, as your profits are typically taxed without the benefit of favorable long-term rates. Gains from investments held for a year or less are taxed as ordinary income, which is usually higher than long-term capital gains rates.