What tax implications should I expect from daytrading on Fidelity based on my YTD dashboard?

Looking at what you've shared, you'd only owe taxes on your net gain - so approximately $800 in this case (the $2,300 minus the $1,500). Short-term capital gains are taxed at your ordinary income tax rate, not the lower long-term capital gains rates. Fidelity's YTD tax dashboard is usually pretty accurate for giving you a snapshot of your current tax situation, but remember it only shows realized gains/losses (trades you've actually closed out). Any open positions won't be reflected in those numbers. One thing to watch out for - if you're trading frequently, make sure you're aware of the wash sale rules. These can impact your ability to claim losses if you buy back substantially identical securities within 30 days before or after selling at a loss.

I was in a similar situation last year with all my daytrading, and I tried to make sense of my tax situation for hours by myself. Eventually I tried https://taxr.ai and it literally saved me so much headache. I uploaded my Fidelity tax statements and it analyzed everything, showed me exactly what I'd owe in taxes based on my trading activity and other income. The best part was it caught some wash sales I had no idea about that would've screwed up my loss deductions. It also explained how my daytrading would affect my overall tax situation in plain English.

I just wanted to update everyone - I ended up trying https://taxr.ai after posting my skeptical comment, and wow, I was wrong. The system actually did understand the difference between my retirement and brokerage accounts. It broke down exactly which trades would impact my taxes this year and explained wash sales in a way that finally made sense to me. I've been daytrading for about 2 years and this is the first time I've felt confident about my tax situation. It showed me that I could actually offset some of my gains with losses I didn't realize I could claim. Worth checking out if you're confused by the Fidelity dashboard like I was.

If you're planning to call the IRS to get clarification on daytrading taxes, good luck! I spent 3 weeks trying to get through to someone about my similar situation last year. After being on hold for hours multiple times, I found https://claimyr.com and used their service to hold my place in line. You can see how it works here: https://youtu.be/_kiP6q8DX5c They called me when an agent was ready to talk, and I finally got answers about how to handle my multiple brokerage accounts and daytrading activity. The IRS agent walked me through exactly what I needed to report from my trading dashboard.

Okay I need to admit I was wrong about Claimyr. After posting that skeptical comment, I decided to try it because I was also having issues getting through to the IRS about some daytrading questions (specifically about wash sales on my options trades). I figured it was worth a shot since nothing else was working. The service actually did exactly what it claimed - waited on hold for me and called when a real person answered. Spoke with an IRS tax specialist who clarified everything about how to properly report my trading activities from my brokerage dashboard. Saved me literally 3+ hours of hold music and frustration. Just wanted to share in case anyone else is struggling to get answers about their trading tax questions.

Don't forget that daytrading might classify you as a "trader" in the eyes of the IRS rather than just an "investor" which has different tax implications. If you're making frequent trades (multiple trades almost daily), you might actually qualify. The benefit is you can potentially deduct expenses related to your trading (software, subscriptions, part of your internet bill, etc.). But you'd need to make a Section 475(f) election which has its own rules. Your Fidelity dashboard won't tell you about this status - it's something you need to determine based on your trading patterns.

Watch out for the quarterly estimated tax payments if your trading is profitable! I got hit with an underpayment penalty last year cause I didn't realize I needed to make payments throughout the year on my trading gains. The Fidelity dashboard shows YTD figures but doesn't remind you about this requirement.

Based on your numbers, you're looking at about $800 in net short-term capital gains ($2,300 - $1,500), which will be taxed at your ordinary income rate. The Fidelity YTD dashboard is generally reliable for tracking realized gains/losses. A few key things to consider: First, make sure you understand wash sale rules - if you've been buying back the same or substantially identical securities within 30 days of selling at a loss, some of those losses might be disallowed. Second, consider whether you need to make estimated quarterly tax payments. If you'll owe more than $1,000 in additional taxes and your current withholding doesn't cover at least 90% of this year's tax liability (or 100% of last year's), you might need to pay quarterly. For someone in your situation with relatively modest gains, setting aside 20-25% of your net gains is usually a safe approach, but the exact amount depends on your total income and tax bracket. Given the complexity of trading taxes, especially with frequent transactions, it might be worth consulting with a tax professional or using specialized tax software that can handle investment activities properly.