Profits on Kalshi are taxable income. Kalshi reports trading proceeds on a 1099-B, bonus credits on a 1099-MISC, interest on a 1099-INT and crypto transfers on a 1099-DA, to users who meet IRS thresholds, and provides a yearly profit-and-loss statement computed FIFO with fees included. What it doesn't do is tell you how event contracts should be classified on your return, because the IRS hasn't said, and neither will we. Here's what's certain and what isn't.
The forms
| Form | What it covers | Who gets it |
|---|---|---|
| 1099-B | Proceeds from your contract trades (treated as broker transactions) | Users meeting IRS thresholds |
| 1099-MISC | Credits and rewards Kalshi gave you (referral bonuses, promotions) | Users meeting IRS thresholds |
| 1099-INT | Interest Kalshi paid on your cash balance | Users meeting IRS thresholds |
| 1099-DA | Digital asset transactions, reported through ZeroHash | Users who deposited or withdrew crypto |
Forms are delivered by Kalshi's tax provider, Zenwork; some arrive by email with a secure download link, so check spam. They're also under Account → Tax Info. If nothing shows up, Kalshi's position is that you likely didn't meet the issuance threshold. That is not the same as having nothing to report.
The PnL statement
Kalshi gives you a yearly Profit and Loss statement, computed first-in-first-out, with fees and rebates included. It's grouped by year and updated on the first morning of each month, so a statement pulled mid-month won't include the latest trades. Download it from Account → Tax Info → select year. If you trade actively, this is the document your accountant will actually use; the 1099-B shows proceeds, the PnL shows what you made.
How event contracts are taxed: the honest answer
The IRS has not issued guidance specific to event contracts on a CFTC exchange. Three readings exist, and tax professionals do not agree:
- Capital gains and losses. This is what the 1099-B structure implies: each contract bought and sold or settled is a transaction with a cost basis and proceeds. Almost all positions are held under a year, so gains would be short-term, taxed as ordinary income rates, with losses offsetting gains and up to $3,000 of other income.
- Section 1256 contracts. Some exchange-traded derivatives get 60/40 treatment (60% long-term, 40% short-term regardless of holding period) and are marked to market at year end. Whether event contracts on a DCM qualify is argued both ways.
- Gambling income. States suing Kalshi say its sports contracts are bets. If the IRS ever agreed, winnings would be ordinary income and losses deductible only against winnings, only if you itemize. No federal tax authority has taken this position for Kalshi as of October 2026.
Kalshi says, in its own words, that it cannot give members tax advice. Pick a treatment with a professional, apply it consistently, and keep the PnL statements.
Practical checklist
- Add your SSN in Account settings if you haven't; it's required for US users.
- In January, download the prior year's PnL statement and any 1099s from Tax Info.
- Reconcile the PnL against your own records if you trade a lot; FIFO and your mental accounting can differ.
- Report bonus credits (1099-MISC) as other income; they're taxable even if you lost them trading.
- Report interest (1099-INT) like bank interest.
- Ask a tax professional which treatment to use for contract gains, especially if your volume is large.
This page describes what Kalshi provides, from its Help Center as of October 15, 2026. It is not tax advice.