WagerMintsRobinhood Prediction Market and Event Contract Taxes (2026)
Robinhood doesn't send a 1099 for event contract trades and doesn't report them to the IRS, so you report your profit or loss yourself from Robinhood's event contracts annual statement.
Checked October 26, 2026 against Robinhood’s own help pages.
Robinhood at a glance
- At tax time
- No 1099 for event contracts. You report from the annual statement.
- Exchange
- CFTC-regulated
- 60/40 method
- Can be argued
- States acting against it
- 8 states
Tax forms
What does Robinhood send at tax time?
- No 1099 for event contract trades. Robinhood's help page says so directly, and says the trades aren't reported to the IRS.
- An event contracts annual statement, usually in late January or early February, listing every trade, closing dates, costs, proceeds, fees and net profit or loss. Robinhood calls it the authoritative record and says it is not a substitute tax reporting form.
- Your consolidated 1099 for stocks, crypto and cash still arrives as normal. Event contracts aren't on it.
Who runs it
Who runs Robinhood's markets?
Robinhood Derivatives, LLC offers the contracts through KalshiEX, ForecastEx, Rothera Exchange and Clearing, or North American Derivatives Exchange (Crypto.com's US exchange). All four are CFTC-regulated.
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 Robinhood trades?
| Method | Where it goes |
|---|---|
| Capital gains | Form 8949 and Schedule D. Box C (held a year or less) or box F (longer), the boxes for sales no 1099-B reported. |
| 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 Robinhood trade history?
In the app: Account, then Reports and statements, then Annual reports. Keep it with your return: with no form showing your trading profit, it's your record if the IRS asks.
More on Robinhood: What to do with the Robinhood statement.
By state
Where are states acting against Robinhood?
Robinhood is a co-defendant in the same tribal suit and the same Ninth Circuit ruling applies to it.
Robinhood received state cease-and-desist orders in December 2025 and September 2026; we found no court case involving Robinhood in Connecticut.
Robinhood Derivatives' federal suit against the attorney general was closed in the district court in March 2026 and an appeal is pending at the First Circuit (No. 26-1257).
Robinhood agreed with the state to stop new sports event contracts in Michigan and close positions by Oct. 9, 2026.
Robinhood received a cease-and-desist letter; no lawsuit was found.
Robinhood's federal suit against Nevada is still open, and the Ninth Circuit ruled against it on sports contracts on August 28, 2026.
Robinhood Derivatives sued New Jersey's gaming director in August 2025 and we found no ruling in that case.
Robinhood Derivatives sued the Washington Gambling Commission director in federal court on March 30, 2026; no ruling was found.
Every other state, with its tax rules: taxes and legal status by state.
Ask your AI
Ask your AI about your Robinhood 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
1,968 characters
I trade prediction markets on Robinhood. I'm working on my US federal taxes for 2026. From WagerMints, checked November 3, 2026: - No 1099 for event contract trades. Robinhood's help page says so directly, and says the trades aren't reported to the IRS. - An event contracts annual statement, usually in late January or early February, listing every trade, closing dates, costs, proceeds, fees and net profit or loss. Robinhood calls it the authoritative record and says it is not a substitute tax reporting form. - 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/robinhood - 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 Robinhood
- Does Robinhood send a 1099 for prediction markets?
- No 1099 for event contract trades. Robinhood's help page says so directly, and says the trades aren't reported to the IRS.
- How are Robinhood prediction market trades taxed?
- Robinhood doesn't send a 1099 for event contract trades and doesn't report them to the IRS, so you report your profit or loss yourself from Robinhood's event contracts annual statement. Robinhood Derivatives, LLC offers the contracts through KalshiEX, ForecastEx, Rothera Exchange and Clearing, or North American Derivatives Exchange (Crypto.com's US exchange). All four are CFTC-regulated.
- Can I use the 60/40 rule for Robinhood 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, Coinbase, 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 Robinhood statement into WagerMints and see your year under all four methods, side by side. Free, no account.
Run your report