WagerMintsCoinbase Prediction Market Taxes (2026)
Coinbase prediction trades are Kalshi contracts held through Coinbase Financial Markets, and Coinbase's help pages don't list a tax form for them, so plan to report your profit or loss yourself from your account history.
Checked October 26, 2026 against Coinbase’s own help pages.
Coinbase at a glance
- At tax time
- Kalshi's markets, held in a Coinbase Financial Markets account.
- Exchange
- CFTC-regulated
- 60/40 method
- Can be argued
- States acting against it
- 5 states
Tax forms
What does Coinbase send at tax time?
- Coinbase's prediction markets help page says only that gains may be taxable. It doesn't name a form for prediction trades.
- If you sold crypto to fund trades, that sale is a separate taxable event and can appear on a Form 1099-DA, the new form for digital asset sales.
- Check the documents section of your Coinbase and CFM accounts after the year ends. If a form does arrive, reconcile it against your own trade list before you file.
Who runs it
Who runs Coinbase's markets?
Prediction markets on Coinbase are offered through Coinbase Financial Markets (CFM), an NFA member, and operated by Kalshi, a CFTC-regulated exchange.
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 Coinbase trades?
| Method | Where it goes |
|---|---|
| Capital gains | Form 8949 and Schedule D. Box C or F for the event contracts. Any crypto you sold goes in the digital asset boxes (G to L), separately. |
| 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 Coinbase trade history?
Your CFM account statements and the trade history for your prediction positions in Coinbase. Keep it with your return: with no form showing your trading profit, it's your record if the IRS asks.
More on Coinbase: Kalshi taxes, explained.
By state
Where are states acting against Coinbase?
Coinbase received a September 2026 order, and its federal suit against the state has an appeal in the Second Circuit (No. 26-2297).
Covered by the October 30, 2026 preliminary injunction in its own suit against the Illinois attorney general.
Named as a Kalshi affiliate in the state's June 2026 lawsuit.
Coinbase agreed with the state to stop new sports event contracts in Michigan and close out positions by Oct. 10, 2026.
The attorney general sued Coinbase Financial Markets on April 21, 2026 and the case is pending in federal court in Manhattan.
Every other state, with its tax rules: taxes and legal status by state.
Ask your AI
Ask your AI about your Coinbase year
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
1,853 characters
I trade prediction markets on Coinbase. I'm working on my US federal taxes for 2026. From WagerMints, checked November 3, 2026: - Coinbase's prediction markets help page says only that gains may be taxable. It doesn't name a form for prediction trades. - If you sold crypto to fund trades, that sale is a separate taxable event and can appear on a Form 1099-DA, the new form for digital asset sales. - 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/taxes/coinbase - 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.
Questions
Questions about Coinbase
- Does Coinbase send a 1099 for prediction markets?
- Coinbase's prediction markets help page says only that gains may be taxable. It doesn't name a form for prediction trades.
- How are Coinbase prediction market trades taxed?
- Coinbase prediction trades are Kalshi contracts held through Coinbase Financial Markets, and Coinbase's help pages don't list a tax form for them, so plan to report your profit or loss yourself from your account history. Prediction markets on Coinbase are offered through Coinbase Financial Markets (CFM), an NFA member, and operated by Kalshi, a CFTC-regulated exchange.
- Can I use the 60/40 rule for Coinbase 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, Crypto.com, Webull, Interactive Brokers (ForecastTrader), DraftKings Predictions, FanDuel Predicts, Novig, PredictIt. All platforms side by side.
See your own year four ways
Type your closed positions from your Coinbase statement into WagerMints and see your year under all four methods, side by side. Free, no account.
Run your report