WagerMintsCoinbase Prediction Market Taxes (2026)
Coinbase prediction trades are Kalshi contracts held through Coinbase Financial Markets, and Coinbase's help pages don't list a tax form for them, so plan to report your profit or loss yourself from your account history.
Checked October 26, 2026 against Coinbase’s own help pages.
Coinbase at a glance
- At tax time
- Kalshi's markets, held in a Coinbase Financial Markets account.
- Exchange
- CFTC-regulated
- 60/40 method
- Can be argued
- States acting against it
- 5 states
Tax forms
What does Coinbase send at tax time?
- Coinbase's prediction markets help page says only that gains may be taxable. It doesn't name a form for prediction trades.
- If you sold crypto to fund trades, that sale is a separate taxable event and can appear on a Form 1099-DA, the new form for digital asset sales.
- Check the documents section of your Coinbase and CFM accounts after the year ends. If a form does arrive, reconcile it against your own trade list before you file.
Who runs it
Who runs Coinbase's markets?
Prediction markets on Coinbase are offered through Coinbase Financial Markets (CFM), an NFA member, and operated by Kalshi, a CFTC-regulated exchange.
That matters for one of the four methods. Section 1256, the 60/40 split, can only be argued for contracts traded on a CFTC-designated exchange. These are, so the 60/40 method is on the table. No court or IRS ruling has settled whether it applies to event contracts. How the 60/40 rule works.
How to report
How do you report Coinbase trades?
| Method | Where it goes |
|---|---|
| Capital gains | Form 8949 and Schedule D. Box C or F for the event contracts. Any crypto you sold goes in the digital asset boxes (G to L), separately. |
| Ordinary income | Schedule 1, line 8z, as one net figure |
| Gambling | Winnings on Schedule 1, line 8b; losses on Schedule A, only if you itemize |
| Section 1256 (60/40) | Form 6781, then Schedule D |
Step by step, including TurboTax: how to report prediction market trades. What each method costs: prediction market taxes, explained.
Trade history
Where is your Coinbase trade history?
Your CFM account statements and the trade history for your prediction positions in Coinbase. Keep it with your return: with no form showing your trading profit, it's your record if the IRS asks.
More on Coinbase: Kalshi taxes, explained.
By state
Where are states acting against Coinbase?
Coinbase received a September 2026 order, and its federal suit against the state has an appeal in the Second Circuit (No. 26-2297).
Coinbase Financial Markets sued the Illinois attorney general on Dec. 18, 2025; no ruling found.
Named as a Kalshi affiliate in the state's June 2026 lawsuit.
Coinbase agreed with the state to stop new sports event contracts in Michigan and close out positions by Oct. 10, 2026.
The attorney general sued Coinbase Financial Markets on April 21, 2026 and the case is pending in federal court in Manhattan.
Every other state, with its tax rules: taxes and legal status by state.
Questions
Questions about Coinbase
- Does Coinbase send a 1099 for prediction markets?
- Coinbase's prediction markets help page says only that gains may be taxable. It doesn't name a form for prediction trades.
- How are Coinbase prediction market trades taxed?
- Coinbase prediction trades are Kalshi contracts held through Coinbase Financial Markets, and Coinbase's help pages don't list a tax form for them, so plan to report your profit or loss yourself from your account history. Prediction markets on Coinbase are offered through Coinbase Financial Markets (CFM), an NFA member, and operated by Kalshi, a CFTC-regulated exchange.
- Can I use the 60/40 rule for Coinbase trades?
- It can be argued, because the contracts trade on a CFTC-designated exchange. No court or IRS ruling has settled whether Section 1256 applies to event contracts.
Other platforms: Kalshi, Polymarket, Robinhood, Crypto.com, Webull, Interactive Brokers (ForecastTrader), DraftKings Predictions, FanDuel Predicts, Novig, PredictIt. All platforms side by side.
See your own year four ways
Type your closed positions from your Coinbase statement into WagerMints and see your year under all four methods, side by side. Free, no account.
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