New, inexperienced investors are rushing into the market thanks to no-commission trades and the popular Robinhood trading app. What many don’t know is that they could owe Uncle Sam taxes on those trades.

If youre one of the millions of day traders who have jumped in and out of markets this year, check your taxes now. Being a taxpayer may not be top of mind, but not paying attention could dent your bottom line next April.
Trading by individuals has surged in 2020, fueled by no-commission trades, a rising market from March through August and free time provided by pandemic lockdowns. At Charles Schwab Corp., the average of 1.6 million daily trades for the second quarter was more than twice the year-earlier average of 716,000….