This page explains what Kalshi provides and what the open questions are. It doesn't tell you how to file. How prediction-market trades are taxed is genuinely unsettled, and the right answer for you depends on your situation, so take your numbers to a tax professional.
The short answer
- Kalshi generally doesn't send a form that reports your trading profit. The forms it issues cover interest, rewards and crypto transfers.
- No form doesn't mean no tax. In the US, income is taxable whether or not anyone sends you a form about it.
- Your trading numbers are in Kalshi's yearly P&L statement, under Account → Tax Info.
- How those profits are taxed is an open question. As of October 2026 the IRS has issued no guidance written specifically for event contracts, and tax professionals argue for different treatments.
What Kalshi sends you
Kalshi's help center lists four forms. You only get a form if you crossed the IRS reporting threshold for it, and they arrive by email from Kalshi's tax-form provider, Zenwork, so check your spam folder.
| Form | What it covers |
|---|---|
| 1099-INT | Interest Kalshi paid you |
| 1099-MISC | Credits and rewards from Kalshi |
| 1099-B | Proceeds from broker transactions: crypto transfers, not your Yes/No trades |
| 1099-DA | Digital-asset reporting from ZeroHash, Kalshi's crypto partner |
None of these reports the profit or loss from the contracts you traded. That's why the P&L statement matters.
Where your trading numbers are
On Kalshi's website: Account → Tax Info, choose the year, and download the P&L statement. Kalshi says it:
- summarizes your trading, including fees and any rebates;
- works out each result first-in, first-out (FIFO);
- is updated monthly, on the first morning of each month.
Kalshi is clear that the statement isn't tax advice. It is the most complete record of your trading results that Kalshi itself provides, so download it every year and keep it.
How the profit might be taxed
Here's the unsettled part. Event contracts don't fit neatly into the boxes the tax code was written with, and as of October 2026 there's no IRS guidance written for them. A Tax Law Center analysis published October 1, 2026 notes there's no explicit public guidance or case law on how sports event contracts are taxed. Tax professionals generally discuss three treatments:
1. Capital gains
Treat each contract like a piece of property: profit or loss when it's sold or settles, short-term if you held it a year or less (almost always the case), reported on Form 8949 and Schedule D. Many traders report this way, and it's often described as the common approach.
2. Section 1256 contracts
Section 1256 covers certain exchange-traded contracts, such as regulated futures. Its gains are taxed 60% as long-term and 40% as short-term regardless of how long you held them, and open positions are valued as if sold at year-end. It's reported on Form 6781 and can mean a lower rate. Some argue Kalshi's contracts qualify because Kalshi is a CFTC-regulated exchange; others argue event contracts are swaps, which Section 1256 excludes. It's debated, and it isn't something you simply choose.
3. Gambling
Winnings are ordinary income, and losses are deductible only if you itemize, and only up to your winnings. From the 2026 tax year, only 90% of gambling losses are deductible (a change made in 2025 to Section 165(d) of the tax code). That can leave tax owed even if you broke even. Sports contracts are the ones most often said to be at risk of this treatment.
These can produce very different tax bills on the same trades, which is exactly why a professional's view is worth paying for here.
What to keep
- Kalshi's P&L statement for each year you traded.
- Any 1099s Kalshi sends (interest, rewards, crypto).
- Your deposits and withdrawals, so your preparer can tell money moved from money made.
- Your own record of trades, if you keep one, to check the statement against.
- Notes on how you filed, so you treat the same kind of trade the same way every year.
State income tax may apply as well. If you also trade on Polymarket or elsewhere, the same questions apply there; check what each platform provides, and keep your own records for any that send nothing.
Where Kesin fits, and where it doesn't
Kesin is an independent iPhone app that keeps your Kalshi and Polymarket trades in one book through the year: live P&L on open positions, your finished trades imported from each exchange, and Leaks, findings on where your money goes. It helps you know how you're doing long before tax season.
It is not a tax tool. Its figures are a tracker's view, not a statement, and it doesn't classify anything for tax purposes. At tax time, use Kalshi's P&L statement and a professional.
Know how you're doing all year, not just in April.
Free on the App Store, with an optional Premium plan.
More guides
Sources
- Kalshi Help Center, What tax documentation does Kalshi provide? (June 2026).
- Tax Law Center, Are sports event contracts on prediction markets gambling for federal tax purposes? (October 1, 2026).
- IRS, About Form 6781 (Section 1256 contracts) and Topic 419, Gambling income and losses.
- The 90% limit on gambling losses: Section 165(d) of the Internal Revenue Code as amended in 2025, for tax years beginning after December 31, 2025.
- Tax rules and platform documents change. This page was checked on October 10, 2026, and is general information, not advice for your situation.