Tax forms

Which tax forms do prediction market traders need?

The form you file depends on the tax method you pick, because no IRS form has an event contract box. Most platforms send no form showing your trading profit, so you work the figures out yourself.

Last reviewed November 3, 2026

Which forms do you file?

Method	Form	Guide
Capital gains	Form 8949 and Schedule D	Boxes and how to report
Section 1256 (disputed)	Form 6781 and Schedule D	Form 6781, line by line
Ordinary income	Schedule 1, line 8z	How to report
Gambling	Schedule 1, line 8b, and Schedule A, line 16	Gambling loss calculator

Entering these in software? Steps for TurboTax, H&R Block and FreeTaxUSA.

Which forms come up only sometimes?

Form	When you use it
Form 8275	To disclose a position, most often Section 1256. How it works.
Form 1045	For a quick refund from a Section 1256 loss carryback. How the carryback works.
Form 1040-X	To fix a return you already filed. What to do about past years.
Form 8453	To mail a Form 8949 statement when you e-file and don’t attach it as a PDF.

Which forms might you receive?

Kalshi: 1099-INT for interest, 1099-MISC for credits and rewards, and 1099-B or 1099-DA for crypto transfers. None of these reports your trading profit. Does Kalshi send a 1099?
polymarket.com: none. Polymarket taxes.
Brokers and other platforms: it varies, and some send a 1099-B for contracts. Check your platform.
Sportsbooks: W-2G for some winnings. Sports betting taxes.

Questions about prediction market tax forms

What tax form do I use for Kalshi?

It depends on your tax method: Form 8949 and Schedule D for capital gains, Form 6781 for Section 1256, Schedule 1 line 8z for ordinary income, or Schedule 1 line 8b with Schedule A for gambling. Use one method, not several.

Does Kalshi send a 1099 for my trades?

Not for trading profit. Kalshi says it can send a 1099-INT for interest, a 1099-MISC for credits and rewards, and a 1099-B or 1099-DA for crypto transfers.

Does polymarket.com send tax forms?

No. polymarket.com sends no tax forms. You work out the figures from your wallet history and report them yourself.

General information about US federal tax, not tax advice.

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.

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