WagerMintsPrediction market taxes by platform
Last reviewed October 26, 2026
| Platform | At tax time | 60/40 method |
|---|---|---|
| Kalshi | No 1099 for trading profit. 1099-INT for interest, 1099-MISC for rewards. | Can be argued |
| Polymarket (polymarket.com) | No forms at all. Your wallet history is the record. | No |
| Polymarket US | A separate CFTC-regulated exchange since December 2025. | Can be argued |
| Robinhood | No 1099 for event contracts. You report from the annual statement. | Can be argued |
| Coinbase | Kalshi's markets, held in a Coinbase Financial Markets account. | Can be argued |
| Crypto.com | May send a 1099-B for contracts, in the futures format. | Can be argued |
| Webull | Kalshi's markets inside Webull. Its tax FAQ doesn't list event contracts. | Can be argued |
| Interactive Brokers (ForecastTrader) | ForecastEx contracts. Look for them on your consolidated 1099. | Can be argued |
| DraftKings Predictions | Not the sportsbook. Its own exchange, DKeX, since June 2026. | Can be argued |
| FanDuel Predicts | Not the sportsbook. Sports contracts come from Crypto.com, financial ones from CME. | Can be argued |
| Novig | Sports exchange, CFTC-designated since June 2026. | Can be argued |
| PredictIt | A CFTC-regulated exchange since its 2025 approval. | Can be argued |
The same four methods apply everywhere
The IRS hasn’t said how event contracts are taxed, so traders and preparers use one of four methods: capital gains, ordinary income, gambling, or Section 1256 (60/40). The platform only changes two things. Whether a form arrives, and whether the exchange is CFTC-designated, which Section 1256 requires. The four methods, compared.
Prediction markets and sportsbooks are taxed differently
DraftKings and FanDuel each run a sportsbook and a separate prediction market. Sportsbook bets are gambling and can come with a W-2G. Their prediction markets are event contracts on CFTC-regulated exchanges. Keep the two apart on your return. Sports betting taxes.
State tax
Your state taxes the same profit, with its own rules for losses. Prediction market and gambling taxes by state.
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