WagerMintsAsk your AI about your prediction market taxes
Last reviewed November 3, 2026
Ask your AI
Build your prompt
Answer a few questions and we write the prompt for ChatGPT, Claude, Perplexity or any AI. It carries the four tax methods, your state’s rule and links to the pages behind them, checked November 3, 2026. Or run your actual trades for exact figures, free.
Add rough numbers (optional)
The AI can then work the methods out for your year. Round figures are enough.
Your prompt
2,044 characters
I trade prediction markets on Kalshi. I'm working on my US federal taxes for 2026. From WagerMints, checked November 3, 2026: - Kalshi's Documents page says it does not report profits and losses to the IRS. - Forms it may send: 1099-INT for interest, 1099-MISC for credits and rewards, 1099-B or 1099-DA for crypto transfers. - Its Profit and Loss statement uses first in, first out, is split by year and updates on the first morning of each month. - Reward credits only appear in the activity export, not the trades export. - The IRS has published no guidance on how event contracts are taxed. Four ways traders report this: 1. Capital gains: Form 8949 and Schedule D, short- or long-term by holding period. Net losses offset up to $3,000 of other income a year, and the rest carries forward. 2. Section 1256: Form 6781, 60% long-term and 40% short-term however long I held. Positions open on December 31 count as sold at that day's value. Disputed: Camuso and Mukherjee (Tax Notes Federal, June 2026) conclude it isn't available, White & Case argues for it, and the CFTC's October 2026 proposal to call event contracts swaps cuts against it, because Section 1256 excludes swaps. 3. Ordinary income: net result on Schedule 1, line 8z. 4. Gambling: winnings on Schedule 1, line 8b. Losses only on Schedule A if I itemize, only up to winnings, and only 90% of them from 2026. Read these pages: - https://wagermints.com/kalshi-taxes - https://wagermints.com/blog/how-kalshi-calculates-profit-and-loss - https://wagermints.com/blog/how-to-report-kalshi-polymarket-taxes My question: How would my year come out under each of the four methods? How to answer: - Say which links you opened, and never describe one you didn't open. If one fails, use the facts above and say so. - Mark each point [linked source], [general tax rule] or [unsettled]. - Put the methods side by side in one table for my year, and state any number you assume. - Don't pick a method for me. End with questions for a CPA or enrolled agent, then anything you need from me.
WagerMints doesn’t see or store what you type here. The prompt goes to the AI you pick, under that company’s terms. Never add your Social Security number, API keys or wallet keys. AI answers can be wrong, so check them against the linked sources and a preparer.
What does the prompt tell the AI?
- Your platform’s forms. What it sends at tax time and where your records are, with the date we checked.
- All four methods. Capital gains, Section 1256, ordinary income and gambling, with the form each one uses. The four methods, compared.
- Your state. How it taxes the income and treats losses, and any legal action on record. Legal status by state.
- Pages to read. It must say which links it opened, and never describe one it didn’t.
- How to answer. It marks each point as a linked source, a general tax rule or unsettled, and it doesn’t pick a method for you.
Questions about using AI for your taxes
Can ChatGPT do my Kalshi or Polymarket taxes?
It can explain the rules and work through rough numbers, but it can't see your trades unless you give them to it, and it can get details wrong. Use it to prepare your questions, and check the answer against the sources and a preparer.
Why not just ask the AI without a prompt?
A plain question often gets a single method stated as fact. The IRS hasn't said how event contracts are taxed, so a good answer has to compare the methods. This prompt gives the AI the four methods, your platform's forms, your state's rule and pages to read.
Does WagerMints see what I type?
No. The prompt is built in your browser. It leaves the page only if you copy it or press an Open button, and then it goes to the AI you chose, under that company's terms. We record that a button was pressed, never the text.
What should I never put in an AI chat?
Your Social Security number, account logins, API keys and wallet private keys. Rough dollar totals are enough for the AI to compare the methods.
Is the AI's answer tax advice?
No, and neither is this page. An AI tool can't take responsibility for your return. For a large or complicated year, take the answer to a CPA, enrolled agent or tax attorney.
General information about US tax, not tax advice.
See your own year four ways
An AI can only estimate from what you tell it. Upload your trades to see your real year under all four methods.
Run your report