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Tax forms

Which tax forms do prediction market traders need?

The form you file depends on the tax method you pick, because no IRS form has an event contract box. Most platforms send no form showing your trading profit, so you work the figures out yourself.

Last reviewed November 3, 2026

Which forms do you file?

MethodFormGuide
Capital gainsForm 8949 and Schedule DBoxes and how to report
Section 1256 (disputed)Form 6781 and Schedule DForm 6781, line by line
Ordinary incomeSchedule 1, line 8zHow to report
GamblingSchedule 1, line 8b, and Schedule A, line 16Gambling loss calculator

Entering these in software? Steps for TurboTax, H&R Block and FreeTaxUSA.

Which forms come up only sometimes?

FormWhen you use it
Form 8275To disclose a position, most often Section 1256. How it works.
Form 1045For a quick refund from a Section 1256 loss carryback. How the carryback works.
Form 1040-XTo fix a return you already filed. What to do about past years.
Form 8453To mail a Form 8949 statement when you e-file and don’t attach it as a PDF.

Which forms might you receive?

Questions about prediction market tax forms

What tax form do I use for Kalshi?

It depends on your tax method: Form 8949 and Schedule D for capital gains, Form 6781 for Section 1256, Schedule 1 line 8z for ordinary income, or Schedule 1 line 8b with Schedule A for gambling. Use one method, not several.

Does Kalshi send a 1099 for my trades?

Not for trading profit. Kalshi says it can send a 1099-INT for interest, a 1099-MISC for credits and rewards, and a 1099-B or 1099-DA for crypto transfers.

Does polymarket.com send tax forms?

No. polymarket.com sends no tax forms. You work out the figures from your wallet history and report them yourself.

General information about US federal tax, not tax advice.

See your own year four ways

WagerMints prices your Kalshi or Polymarket year under all four federal treatments, side by side, with the work shown and the forms filled. Free to run.

Run your report

Sources

  1. IRS, Instructions for Form 8949
  2. IRS Form 6781 (2025) and instructions
  3. IRS, Instructions for Schedule 1 and Form 1040
  4. IRS Tax Topic 419, gambling income and losses
  5. IRS, Instructions for Form 8275 (Rev. October 2024)
  6. IRS, Instructions for Form 1045 (2025)
  7. IRS, About Form 1040-X
  8. Kalshi Help Center, What Tax Documentation Does Kalshi Provide? (June 22, 2026)