WagerMintsThe tax rules behind prediction markets, worked out
Plain-English writeups of the rules that actually apply to Kalshi and Polymarket trading: the four federal treatments, the Section 1256 argument, the 2026 gambling-loss cap, and how state taxes stack on top. Every figure is checked against the same engine and citations the report uses.
June 15, 2026 · 4 min read
How Are Kalshi and Polymarket Trades Taxed? The 4 Methods Traders Actually Use
No IRS ruling covers prediction markets yet. The four treatments filers actually use, and what each one costs.
The WagerMints Team
Prediction-market tax research
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November 5, 2026 · 6 min read
Prediction Apps Are Pulling Contracts in Utah. What Happens to Your Taxes?
DraftKings, FanDuel, Robinhood and Fanatics pulled contracts in Utah. Open positions still settle, and the year each one settles sets your tax year.
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November 3, 2026 · 5 min read
Do the Utah and Maryland Kalshi Cases Change Your Taxes?
Neither the Utah charges nor the Maryland appeal changes how Kalshi trades are taxed or reported today. Where each case stands and what could change later.
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November 2, 2026 · 6 min read
I Didn't Report Kalshi or Polymarket in Past Years. What Now?
Never reported your Kalshi or Polymarket trades? When to amend with Form 1040-X, when to file a late return, what penalties apply, and when to call a lawyer.
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November 1, 2026 · 5 min read
My State Calls Kalshi Gambling. Does That Decide My Federal Tax?
A state calling Kalshi gambling doesn't set your federal tax. What federal law looks at, where state law does matter, and how the court fights could change it.
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October 31, 2026 · 5 min read
Do Wash Sales Apply to Kalshi and Polymarket?
The wash sale rule covers stock and securities. No IRS guidance says if that includes event contracts. What each tax method means for a sell-and-rebuy.
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October 30, 2026 · 8 min read
Polymarket Hacked Again: What the $2.7 Million Drain Means for Your Taxes
Polymarket's Oct 29 hack drained about $2.7 million; June's took $2.94 million. Who gets refunded, if refunds are taxable, and when a theft is deductible.
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- Utah Prediction Market Exits: What Happens to Your TaxesCourts & regulators
- Utah and Maryland Kalshi Cases: Do They Change Your Taxes?Courts & regulators
- Didn't Report Kalshi or Polymarket Trades? What to DoFiling
- State Calls Kalshi Gambling: Does It Change Federal Tax?Courts & regulators
- Do Wash Sale Rules Apply to Kalshi and Polymarket?Losses
- Polymarket Hack: $2.7M Drained, Refunds and Your TaxesLosses
- Hedging With Kalshi: How Event Contract Hedges Are TaxedSection 1256
- Prediction Markets vs. Sports Betting: How Taxes DifferOverview
- Midterm Election Betting Taxes on Kalshi and PolymarketTax rates
- Polymarket Tax Study: 81 Big Wallets, Three Tax MethodsData
- How to Report Kalshi and Polymarket on Your TaxesFiling
- Do You Need a Kalshi Tax Specialist or CPA?Filing
- How Kalshi Calculates Profit and Loss: FIFO, Fees, UpdatesReporting & 1099s
- Kalshi Positions Open on December 31: Are They Taxed?Section 1256
- Section 1256 Loss Carryback for Kalshi TradersLosses
- The 2% Federal Wagering Tax and Prediction MarketsExcise tax
- How to Fill Out Form 6781 for Kalshi TradesFiling
- Kalshi in TurboTax, H&R Block and FreeTaxUSAFiling
- Form 8275 for Kalshi and Section 1256: Do You Need It?Filing
- Are Kalshi and Polymarket Losses Tax Deductible?Losses
- Prediction Market Taxes: Where Tax Experts Land (2026)Expert views
- CFTC Event Contracts as Swaps: What Changes for Your TaxesCourts & regulators
- Kalshi Supreme Court Case: What It Means for Your TaxesCourts & regulators
- Kalshi Perpetual Futures: How Are They Taxed? (2026)Perpetual futures
- Kalshi Tax Rate 2026: What You Pay on Winnings (Table)Tax rates
- Does Kalshi Take Taxes Out When You Withdraw?Withholding
- Does Kalshi Send a 1099? Tax Forms and the $600 Rule (2026)Reporting & 1099s
- Robinhood Event Contracts Taxes: Your Statement ExplainedReporting & 1099s
- Section 70114 (P.L. 119-21): The 90% Wagering Loss RuleGambling & OBBBA
- Prediction Market State Taxes 2026: Levies and Loss RulesState tax
- Gambling Losses in 2026: The New 90% Deduction LimitGambling & OBBBA
- Does Section 1256 (60/40) Apply to Kalshi and Polymarket?Section 1256
- How Are Kalshi and Polymarket Trades Taxed? 4 MethodsOverview
Run this against your own trades
See all four treatments computed from your real Kalshi export or Polymarket wallet, side by side. Processed in memory, not stored unless you opt in to share it.