WagerMintsCrypto.com Prediction Market Taxes (2026)
Crypto.com says it may send a Form 1099-B to US users who traded contracts, in the format used for regulated futures (boxes 8 to 11), but its help page doesn't say whether prediction contracts are included, so check your tax documents and keep your own trade list.
Checked October 26, 2026 against Crypto.com’s own help pages.
Crypto.com at a glance
- At tax time
- May send a 1099-B for contracts, in the futures format.
- Exchange
- CFTC-regulated
- 60/40 method
- Can be argued
- States acting against it
- 6 states
Tax forms
What does Crypto.com send at tax time?
- Form 1099-B for contracts, with realized profit or loss on closed contracts (box 8), year-end open positions (boxes 9 and 10) and the total (box 11). That layout is the one used for Section 1256 contracts.
- Form 1099-DA for digital asset sales, and Form 1099-MISC for rewards of $600 or more, if they apply.
- Crypto.com's page adds that it's your job to decide how the form applies to your return.
Who runs it
Who runs Crypto.com's markets?
Crypto.com's US prediction contracts trade on Crypto.com | Derivatives North America (CDNA), the CFTC-regulated exchange formerly called Nadex. CDNA also supplies contracts to other apps.
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 Crypto.com trades?
| Method | Where it goes |
|---|---|
| Capital gains | Form 8949 and Schedule D. Box C (held a year or less) or box F (longer). If your 1099-B lists the contracts in boxes 8 to 11, read the note below first. |
| 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 Crypto.com trade history?
The Tax Center and transaction history in your Crypto.com account. Keep it with your return: with no form showing your trading profit, it's your record if the IRS asks.
- If your 1099-B lists the contracts in boxes 8 to 11, Crypto.com is reporting them as Section 1256 contracts, and the IRS expects them on Form 6781 under the 60/40 split. You can file another way, but the IRS matches returns against 1099s, so expect to explain the difference.
By state
Where are states acting against Crypto.com?
Crypto.com's exchange joined the Arizona federal case as a plaintiff, and the injunction covers event contracts on any CFTC-regulated exchange.
Crypto.com received state cease-and-desist orders in December 2025 and September 2026; we found no court case in Connecticut.
Its exchange, North American Derivatives Exchange (OG), joined the CFTC's case as an intervenor and the injunction covers contracts on CFTC-regulated exchanges.
Crypto.com's exchange (OG.Com Prediction Markets) is suing the attorney general and gaming officials in Kansas City federal court.
Crypto.com's federal suit against Nevada is still open, and the Ninth Circuit ruled against it on sports contracts on August 28, 2026.
Crypto.com's exchange, North American Derivatives Exchange, sued the attorney general in federal court on June 12, 2026.
Every other state, with its tax rules: taxes and legal status by state.
Ask your AI
Ask your AI about your Crypto.com 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
1,896 characters
I trade prediction markets on Crypto.com. I'm working on my US federal taxes for 2026. From WagerMints, checked November 3, 2026: - Form 1099-B for contracts, with realized profit or loss on closed contracts (box 8), year-end open positions (boxes 9 and 10) and the total (box 11). That layout is the one used for Section 1256 contracts. - Form 1099-DA for digital asset sales, and Form 1099-MISC for rewards of $600 or more, if they apply. - 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/crypto-com - 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 Crypto.com
- Does Crypto.com send a 1099 for prediction markets?
- Form 1099-B for contracts, with realized profit or loss on closed contracts (box 8), year-end open positions (boxes 9 and 10) and the total (box 11). That layout is the one used for Section 1256 contracts.
- How are Crypto.com prediction market trades taxed?
- Crypto.com says it may send a Form 1099-B to US users who traded contracts, in the format used for regulated futures (boxes 8 to 11), but its help page doesn't say whether prediction contracts are included, so check your tax documents and keep your own trade list. Crypto.com's US prediction contracts trade on Crypto.com | Derivatives North America (CDNA), the CFTC-regulated exchange formerly called Nadex. CDNA also supplies contracts to other apps.
- Can I use the 60/40 rule for Crypto.com 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, Coinbase, 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 Crypto.com statement into WagerMints and see your year under all four methods, side by side. Free, no account.
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