WagerMintsInteractive Brokers ForecastTrader Taxes (2026)
Forecast contracts at Interactive Brokers trade on ForecastEx, a CFTC-regulated exchange, and IBKR issues one consolidated 1099 per account, so start by checking whether your forecast contracts appear on it before you report anything yourself.
Checked October 26, 2026 against Interactive Brokers (ForecastTrader)’s own help pages.
Interactive Brokers (ForecastTrader) at a glance
- At tax time
- ForecastEx contracts. Look for them on your consolidated 1099.
- Exchange
- CFTC-regulated
- 60/40 method
- Can be argued
Tax forms
What does Interactive Brokers (ForecastTrader) send at tax time?
- IBKR issues a consolidated 1099 for US clients, available February 15, and sends the IRS the same information.
- Its tax page also offers a Form 8949 worksheet (March 1) and a gain and loss worksheet for Section 1256 contracts.
- IBKR's tax pages don't single out forecast contracts, so confirm where they appear before you file.
Who runs it
Who runs Interactive Brokers (ForecastTrader)'s markets?
Forecast contracts trade on ForecastEx LLC, an Interactive Brokers affiliate and 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 Interactive Brokers (ForecastTrader) trades?
| Method | Where it goes |
|---|---|
| Capital gains | Form 8949 and Schedule D. Box C or F. If your 1099-B lists forecast contracts as Section 1256 contracts, 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 Interactive Brokers (ForecastTrader) trade history?
The Annual Statement (February 1) and the activity statements in Client Portal. Keep it with your return: with no form showing your trading profit, it's your record if the IRS asks.
- If the 1099-B reports your forecast contracts as Section 1256 contracts (boxes 8 to 11), the IRS expects them on Form 6781. You can file another way, but the IRS matches returns against 1099s, so expect to explain the difference.
- IBKR notes that its futures and Section 1256 1099-B can't be imported into TurboTax, so those figures are typed in by hand.
Ask your AI
Ask your AI about your Interactive Brokers (ForecastTrader) 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
1,850 characters
I trade prediction markets on Interactive Brokers (ForecastTrader). I'm working on my US federal taxes for 2026. From WagerMints, checked November 3, 2026: - IBKR issues a consolidated 1099 for US clients, available February 15, and sends the IRS the same information. - Its tax page also offers a Form 8949 worksheet (March 1) and a gain and loss worksheet for Section 1256 contracts. - 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/interactive-brokers - 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 Interactive Brokers (ForecastTrader)
- Does Interactive Brokers (ForecastTrader) send a 1099 for prediction markets?
- IBKR issues a consolidated 1099 for US clients, available February 15, and sends the IRS the same information.
- How are Interactive Brokers (ForecastTrader) prediction market trades taxed?
- Forecast contracts at Interactive Brokers trade on ForecastEx, a CFTC-regulated exchange, and IBKR issues one consolidated 1099 per account, so start by checking whether your forecast contracts appear on it before you report anything yourself. Forecast contracts trade on ForecastEx LLC, an Interactive Brokers affiliate and a CFTC-regulated exchange.
- Can I use the 60/40 rule for Interactive Brokers (ForecastTrader) 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.
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See your own year four ways
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