WagerMintsPredictIt Prediction Market Taxes (2026)
PredictIt profits are taxable whether or not a form arrives, and since PredictIt now runs on a CFTC-regulated exchange, the same four reporting methods apply as for Kalshi.
Checked October 26, 2026 against PredictIt’s own help pages.
PredictIt at a glance
- At tax time
- A CFTC-regulated exchange since its 2025 approval.
- Exchange
- CFTC-regulated
- 60/40 method
- Can be argued
Tax forms
What does PredictIt send at tax time?
- PredictIt users have reported receiving a 1099-MISC showing net profit after fees in past years. We couldn't confirm PredictIt's current practice from its own pages.
- If you get a 1099-MISC, the IRS has a copy. Make sure the income on your return covers it, whichever method you use.
Who runs it
Who runs PredictIt's markets?
PredictIt's operator, Aristotle, received CFTC approval to run a designated contract market and a clearinghouse in September 2025.
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 PredictIt trades?
| Method | Where it goes |
|---|---|
| Capital gains | Form 8949 and Schedule D. Box C or F under capital gains treatment. |
| 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 PredictIt trade history?
Your PredictIt account history and any year-end statement. Keep it with your return: with no form showing your trading profit, it's your record if the IRS asks.
Ask your AI
Ask your AI about your PredictIt 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
1,870 characters
I trade prediction markets on PredictIt. I'm working on my US federal taxes for 2026. From WagerMints, checked November 3, 2026: - PredictIt users have reported receiving a 1099-MISC showing net profit after fees in past years. We couldn't confirm PredictIt's current practice from its own pages. - If you get a 1099-MISC, the IRS has a copy. Make sure the income on your return covers it, whichever method you use. - 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/predictit - 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 PredictIt
- Does PredictIt send a 1099 for prediction markets?
- PredictIt users have reported receiving a 1099-MISC showing net profit after fees in past years. We couldn't confirm PredictIt's current practice from its own pages.
- How are PredictIt prediction market trades taxed?
- PredictIt profits are taxable whether or not a form arrives, and since PredictIt now runs on a CFTC-regulated exchange, the same four reporting methods apply as for Kalshi. PredictIt's operator, Aristotle, received CFTC approval to run a designated contract market and a clearinghouse in September 2025.
- Can I use the 60/40 rule for PredictIt 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, Crypto.com, Webull, Interactive Brokers (ForecastTrader), DraftKings Predictions, FanDuel Predicts, Novig. All platforms side by side.
See your own year four ways
Type your closed positions from your PredictIt statement into WagerMints and see your year under all four methods, side by side. Free, no account.
Run your report