Prediction market tax guides

Polymarket taxes: how to report your trades

Polymarket doesn’t send tax forms, but your profits are taxable. How Polymarket trades, redemptions and rewards are taxed, and where they go on your return.

Updated October 7, 2026Read

Kalshi taxes: how to report your trading profits

Kalshi doesn’t send a 1099 for your event-contract trades, but the profits are taxable. Here’s how Kalshi trading is taxed and how to report it for 2025 and 2026.

Updated October 7, 2026Read

Does Polymarket send a 1099?

Polymarket doesn’t send 1099s or any US tax forms. What that means for your taxes, how exchange 1099-DA forms fit in, and how to report your Polymarket trades.

Updated October 7, 2026Read

Does Kalshi send a 1099?

Kalshi sends a 1099-INT and a 1099-MISC, but no 1099-B for your event-contract trades. What each Kalshi tax form covers and how to report your trades yourself.

Updated October 7, 2026Read

Section 1256 and event contracts: do Kalshi trades get 60/40?

Some traders report Kalshi contracts under Section 1256: 60% long-term, 40% short-term, marked to market on December 31. How it works, Form 6781, and the risks.

Updated October 7, 2026Read

Are prediction markets taxed as gambling?

If your Kalshi or Polymarket trades are treated as gambling, only 90% of losses are deductible from 2026, and only if you itemize. How it works, with examples.

Updated October 7, 2026Read