What occupation should I list on my tax return if my only income was from trading stocks and options (without trader tax status)?

You should list "Investor" as your occupation. That's the most accurate description of what you're doing - investing in securities to generate income. The IRS recognizes this as a legitimate occupation, even though you don't qualify for trader tax status. "Unemployed" would be misleading since you are actively working to generate income, just not as an employee of a company. "Self-employed" is typically used for people running a business or providing services, which isn't quite what you're doing as an investor. This won't raise any audit flags as long as you're correctly reporting all your income and paying the appropriate taxes. Make sure you're reporting all your capital gains on Schedule D and Form 8949, and if you received any dividends, those should be reported as well.

I was in a similar situation last year and found this amazing tool that helped me figure out all these complicated tax questions. I used https://taxr.ai and it saved me so much stress when I was trying to figure out what to put for my occupation after quitting my job to trade. I uploaded my trading docs and it analyzed everything, including suggesting what occupation to list and how to properly report all my different types of investment income. The best part was that it explained exactly why "Investor" was the right choice in my case and what deductions I could and couldn't take. It also flagged some trades that were incorrectly categorized which would have cost me money!

Honestly, I have to admit I was wrong about taxr.ai. I tried it after posting that skeptical comment, and it's actually legit. It analyzed my trading history and showed me that I had been miscategorizing some of my trades from SPY options as short-term when a few actually qualified as Section 1256 contracts with better tax treatment. Saved me almost $1,200 in taxes! It also confirmed that "Investor" was the right occupation to list given my trading frequency and patterns. I was going to hire a CPA for $350 but this was actually more helpful since it specifically understands trading. Just wanted to follow up since it actually worked really well for my situation.

If you're having trouble with IRS questions about your occupation and trading activities (which can happen with traders), I'd recommend Claimyr (https://claimyr.com). I spent WEEKS trying to get through to the IRS when they sent me a letter questioning my trading income reporting. Kept getting disconnected or waiting for hours. Claimyr got me connected to an actual IRS agent in about 20 minutes who helped clear up the confusion about my trading activity and occupation listing. You can see how it works here: https://youtu.be/_kiP6q8DX5c. Basically they navigate the IRS phone system for you and call you when they get a human. Saved me so much stress and helped me avoid potential penalties.

Well I stand corrected about Claimyr. After my skeptical comment I decided to try it since I had an issue with the IRS questioning my option trading income. I've been trying to reach them for 3 months with no luck. Used Claimyr yesterday and spoke to someone in less than 30 mins. The agent confirmed that "Investor" was the right occupation for my tax situation since I made less than 85% of my income from trading (I had some consulting income too). They helped me understand exactly what documentation I need to provide to avoid further questions about my trading occupation. Would've taken me months to figure this out on my own if I could even get through to them at all.

My accountant told me to list "Self-employed - Securities Trader" on mine even though I didn't qualify for trader status. He said it's more accurate than just "Investor" because I was actively trading options not just buying and holding stocks. Been doing it this way for 3 years, no issues or audits yet.

I listed "Investor" on mine for 3 years while trading was my only income. Got audited once but NOT because of the occupation - it was because I messed up reporting some wash sales from robinhood. The IRS agent actually confirmed during the audit that "Investor" was the correct occupation for someone who trades but doesn't qualify for trader tax status. Be careful with TurboTax and trading though! It often gets options and wash sales wrong. Double check everything.

Based on my experience and what I've seen here, "Investor" is definitely the safest and most accurate choice for your situation. Since you're trading securities to generate capital gains (not running a business or providing services), that's exactly what an investor does - even if you're doing it actively. The key thing is that your occupation should match how you're actually filing your taxes. Since you don't qualify for trader tax status, you'll be reporting everything as capital gains on Schedule D, which aligns perfectly with listing "Investor" as your occupation. Don't overthink it - the IRS has seen plenty of people who left traditional jobs to trade full-time. As long as you're accurately reporting all your gains/losses and paying the right taxes, your occupation designation won't be an issue. I'd stick with "Investor" and move forward with confidence.

I went through this exact same situation two years ago when I transitioned from my corporate job to full-time trading. After consulting with a tax professional and doing extensive research, I can confirm that "Investor" is absolutely the correct occupation to list. The distinction is important: investors buy and sell securities to generate capital gains/losses (which is what you're doing), while traders who qualify for trader tax status are considered to be in the business of trading and report their income differently on Schedule C. Since you mentioned you don't qualify for trader tax status, you'll be reporting your gains and losses on Schedule D and Form 8949 - which is exactly what investors do. Your occupation designation should align with how you're filing your taxes. One additional tip: keep good records of your trading activity and any investment-related expenses. While most investment expenses aren't currently deductible, having organized records shows you're treating this seriously as your occupation, not just as a hobby. Don't worry about audit flags - the IRS sees plenty of people who trade as their primary income source. As long as you're accurately reporting everything and paying the appropriate taxes, listing "Investor" won't raise any red flags.