WagerMintsPredictIt Prediction Market Taxes (2026)
PredictIt profits are taxable whether or not a form arrives, and since PredictIt now runs on a CFTC-regulated exchange, the same four reporting methods apply as for Kalshi.
Checked October 26, 2026 against PredictIt’s own help pages.
PredictIt at a glance
- At tax time
- A CFTC-regulated exchange since its 2025 approval.
- Exchange
- CFTC-regulated
- 60/40 method
- Can be argued
Tax forms
What does PredictIt send at tax time?
- PredictIt users have reported receiving a 1099-MISC showing net profit after fees in past years. We couldn't confirm PredictIt's current practice from its own pages.
- If you get a 1099-MISC, the IRS has a copy. Make sure the income on your return covers it, whichever method you use.
Who runs it
Who runs PredictIt's markets?
PredictIt's operator, Aristotle, received CFTC approval to run a designated contract market and a clearinghouse in September 2025.
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 PredictIt trades?
| Method | Where it goes |
|---|---|
| Capital gains | Form 8949 and Schedule D. Box C or F under capital gains treatment. |
| 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 PredictIt trade history?
Your PredictIt account history and any year-end statement. Keep it with your return: with no form showing your trading profit, it's your record if the IRS asks.
Questions
Questions about PredictIt
- Does PredictIt send a 1099 for prediction markets?
- PredictIt users have reported receiving a 1099-MISC showing net profit after fees in past years. We couldn't confirm PredictIt's current practice from its own pages.
- How are PredictIt prediction market trades taxed?
- PredictIt profits are taxable whether or not a form arrives, and since PredictIt now runs on a CFTC-regulated exchange, the same four reporting methods apply as for Kalshi. PredictIt's operator, Aristotle, received CFTC approval to run a designated contract market and a clearinghouse in September 2025.
- Can I use the 60/40 rule for PredictIt 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, Coinbase, Crypto.com, Webull, Interactive Brokers (ForecastTrader), DraftKings Predictions, FanDuel Predicts, Novig. All platforms side by side.
See your own year four ways
Type your closed positions from your PredictIt statement into WagerMints and see your year under all four methods, side by side. Free, no account.
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