WagerMintsWebull Prediction Market Taxes (2026)
Webull's prediction markets are Kalshi contracts, and Webull's list of the 1099s it sends doesn't mention event contracts, so expect to report your profit or loss yourself from your statements.
Checked October 26, 2026 against Webull’s own help pages.
Webull at a glance
- At tax time
- Kalshi's markets inside Webull. Its tax FAQ doesn't list event contracts.
- Exchange
- CFTC-regulated
- 60/40 method
- Can be argued
- States acting against it
- 1 state
Tax forms
What does Webull send at tax time?
- Webull's tax FAQ says you get a 1099 for dividends over $10, interest, sales of stocks, ETFs or options (1099-B), and miscellaneous income over $600. Event contracts aren't on that list.
- Your other Webull 1099s arrive as usual. Check whether anything for event contracts appears on them, and don't count the same trades twice.
Who runs it
Who runs Webull's markets?
Webull offers prediction markets through its partnership with 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 Webull trades?
| Method | Where it goes |
|---|---|
| Capital gains | Form 8949 and Schedule D. Box C (held a year or less) or box F (longer). |
| 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 Webull trade history?
Your Webull account statements and trade confirmations for event contract trades. Keep it with your return: with no form showing your trading profit, it's your record if the IRS asks.
More on Webull: Kalshi taxes, explained.
By state
Where are states acting against Webull?
Orders issued, cases running
Every other state, with its tax rules: taxes and legal status by state.
Ask your AI
Ask your AI about your Webull 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
1,908 characters
I trade prediction markets on Webull. I'm working on my US federal taxes for 2026. From WagerMints, checked November 3, 2026: - Webull's tax FAQ says you get a 1099 for dividends over $10, interest, sales of stocks, ETFs or options (1099-B), and miscellaneous income over $600. Event contracts aren't on that list. - Your other Webull 1099s arrive as usual. Check whether anything for event contracts appears on them, and don't count the same trades twice. - 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/webull - 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 Webull
- Does Webull send a 1099 for prediction markets?
- Webull's tax FAQ says you get a 1099 for dividends over $10, interest, sales of stocks, ETFs or options (1099-B), and miscellaneous income over $600. Event contracts aren't on that list.
- How are Webull prediction market trades taxed?
- Webull's prediction markets are Kalshi contracts, and Webull's list of the 1099s it sends doesn't mention event contracts, so expect to report your profit or loss yourself from your statements. Webull offers prediction markets through its partnership with Kalshi, a CFTC-regulated exchange.
- Can I use the 60/40 rule for Webull 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, 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 Webull statement into WagerMints and see your year under all four methods, side by side. Free, no account.
Run your report