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@mickey wrote:

...One of my clients is a day trader.  This year, in 2020 no less, he made $200K.  He will file schedule C sole proprietor.  He thinks that he doesn't have to pay self employment tax because he qualifies for the Trader Tax Status (TTS).  I did some reading online and am not finding his claim to be true.

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Agree with Bob.  The facts and circumstances tests outlined in the link Bob provided are from case laws.  His investment intent, nature of the income derived, as well as the frequency, extent, and regularity of his trading, when considered collectively, are more important than the $200k he made.

Not sure if Sch C treatment is his only objective.  If deducting his expenses is all that he's looking for, that may just be it but MTM is often what traders aim for.