WagerMintsKalshi tax calculator
Last reviewed November 6, 2026
Every position that made money this year.
Every position that lost money, as a positive number.
Net result: $10,000. Federal tax this year from this trading, at 24%:
Capital gains
$10,000 short-term gain at 24%.
$2,400
Ordinary income
$10,000 at 24%.
$2,400
Gambling
$30,000 winnings at 24%, losses count for nothing without itemizing.
$7,200
Section 1256 (60/40)lowest
60% at 15% and 40% at 24% on $10,000.
$1,860
The gap between the cheapest and the most expensive method is $5,340 of federal tax, for the same trades.
A rough estimate at one bracket rate, for this trading only. It leaves out the standard deduction effect, state tax and other income. Your own trades give the real numbers.
How do I use the Kalshi tax calculator?
- Download the realized P&L file from Kalshi’s Documents tab. It lists every closed position with its profit or loss.
- Add up the winners for the first box and the losers for the second. Don’t use Kalshi’s single profit figure: it blends in reward credits.
- Pick your federal bracket and the tax year. Tick “I itemize” only if you itemize deductions.
The calculator prices the same trades four ways and marks the lowest. Which Kalshi file, and why.
Example: what tax do you owe on a winning Kalshi year?
Say your winning positions made $30,000 and your losing ones lost $20,000, a $10,000 net profit, in the 24% bracket for 2026:
| Method | Federal tax | How it’s worked out |
|---|---|---|
| Capital gains | $2,400 | $10,000 short-term gain at 24% |
| Ordinary income | $2,400 | $10,000 at 24% |
| Gambling, standard deduction | $7,200 | $30,000 winnings at 24%, losses count for nothing without itemizing |
| Gambling, itemizing | $2,880 | $30,000 winnings, less $18,000 of losses (90% rule), at 24% |
| Section 1256 (60/40) | $1,860 | 60% at 15% and 40% at 24% on $10,000 |
The same trades cost between $1,860 and $7,200 of federal tax, a gap of $5,340. Gambling on the standard deduction costs the most because the losses count for nothing: you pay tax on every winning trade.
Example: do you owe tax on Kalshi if you lost money?
You can. Take $20,000 of winning positions and $50,000 of losing ones, a $30,000 loss for the year:
| Method | Federal tax | How it’s worked out |
|---|---|---|
| Capital gains | Saves $720 | $3,000 of the loss comes off other income at 24%. $27,000 carries forward |
| Ordinary income | Depends on your facts | Whether a net loss reduces other income depends on your facts, such as trader status |
| Gambling, standard deduction | $4,800 | $20,000 winnings at 24%, losses count for nothing without itemizing |
| Gambling, itemizing | $0 | $20,000 winnings, less $20,000 of losses (90% rule), at 24% |
| Section 1256 (60/40) | Saves $720 | $3,000 off other income this year, or carry the loss back 3 years against past 60/40 gains. $27,000 carries forward |
As gambling on the standard deduction, this trader lost $30,000 and still owes $4,800. As capital gains, the loss takes $3,000 off other income this year and the rest carries forward. How losses work under each method.
What does the 90% rule do to a break-even year?
From 2026, only 90% of gambling losses are deductible, even when you itemize. A year with $10,000 won and $10,000 lost nets to zero, but as gambling you deduct $9,000 and pay tax on the difference: $240 in 2026, against $0 for the same year in 2025. Capital gains treatment owes $0. The 90% rule explained.
Are Kalshi rewards and interest in the calculator?
No. Liquidity rewards, rebates and referral credits are ordinary income, and so is interest on your balance. They’re taxed at your ordinary rate under every method, so this calculator leaves them out. Kalshi reports them on a 1099-MISC and a 1099-INT once they pass the IRS thresholds. What Kalshi sends and when.
Can I use the 60/40 method on Kalshi?
It can be argued, but it isn’t settled. Section 1256 needs a CFTC-designated exchange, and Kalshi is one. Whether event contracts qualify is still disputed, and a CFTC proposal to treat them as swaps cuts against it. Both sides of the 60/40 question.
What does the calculator leave out?
- Your other income and the standard deduction. It prices this trading at one bracket rate.
- State income tax. Your state’s rules.
- The 3.8% net investment income tax, which can apply to capital and Section 1256 gains above $200,000 of modified adjusted gross income ($250,000 married filing jointly).
- Open positions on December 31, which Section 1256 counts as sold at that day’s price. What the December 31 mark does.
Your own trades in WagerMints give the full figures, with each of these handled.
Kalshi tax calculator questions
How are Kalshi winnings taxed?
Kalshi winnings are taxable, and Kalshi doesn't report your trading profit to the IRS, so you report it yourself under one of four methods: capital gains, ordinary income, gambling or Section 1256. Kalshi is a CFTC-regulated exchange, so the 60/40 method can be argued, though it isn't settled.
Where do I get the numbers for a Kalshi tax calculator?
From Kalshi's realized P&L file in the Documents tab. Add up the profit on your winning closed positions, and separately the loss on your losing ones. Reward credits are in the activity export and are taxed as ordinary income on their own.
Does Kalshi send a 1099 for my trades?
No. Kalshi sends no tax form for event-contract trades. It sends a 1099-MISC for reward and referral credits and a 1099-INT for interest once they pass the IRS thresholds: $2,000 for a 1099-MISC from 2026, and $10 for a 1099-INT.
Do I owe tax on Kalshi if I lost money for the year?
You can. Under gambling treatment, your winning trades are income and your losses count only if you itemize. In our example, a trader who lost $30,000 overall still owes $4,800 on the standard deduction. As capital gains, the same year takes $3,000 off other income and carries the rest forward.
Does Kalshi take taxes out of my winnings?
No. Kalshi does not withhold income tax from winnings, settlements or withdrawals, so the whole bill lands on your return.
Which tax method should I use for Kalshi?
The IRS has not said which method applies to event contracts, so the choice is a legal judgment. See what each method costs on your own trades, then decide with a tax preparer, and keep a note of why you chose it.
Not on Kalshi? Use the general calculator or the Polymarket version.
See your own year four ways
Upload your Kalshi P&L file and activity export to WagerMints for the exact figures, your reward credits split out, and the forms filled in. Free to run.
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