Kalshi Taxes: Which 1099 Do You Get?
A 41-second comedy short from W2gMatch. General information, not tax advice.
Jack asks which 1099 a prediction market sends. Penny: for event contract gains, none, and they are still taxable. The narrator lists the forms Kalshi does send: 1099-MISC for rewards, 1099-INT for interest, 1099-B or 1099-DA for some crypto. Keep the PnL statement; the IRS has not said how event contracts are taxed. Then the free session tracker every account gets.
The fact behind the joke: the forms, from the answer page
- Kalshi issues Form 1099-MISC for rewards, 1099-INT for interest, and 1099-B or 1099-DA for certain crypto transactions, but no form for event contract gains. Those gains are still taxable income; keep the PnL statement. Kalshi and Polymarket taxes →
- The IRS has not said whether event contracts are gambling, capital assets or Section 1256 contracts. Kalshi and Polymarket taxes →
- If the gains are treated as gambling, losses count only if you itemize, and from 2026 only 90% of them, up to winnings. Can I deduct gambling losses? →
High rollers don't guess. They reconcile.
See what the 2026 rule does to your own winnings and losses, in seconds.
Key moments
Transcript
- 0:00Prediction market taxes. Which 1099 do I get?
- 0:00On screen: Kalshi taxes: which 1099 do you get? Jack and Penny answer it
- 0:04On screen: Penny Okafor, CPA
- 0:04For contract gains, none.
- 0:06Still taxable.
- 0:08On screen: 1099-MISC rewards · 1099-INT interest · 1099-B/DA crypto. Contract gains: no form. Keep the PnL statement.
- 0:08On screen: The IRS has not said how event contracts are taxed. Ask a preparer.
- 0:08Kalshi sends a 1099-MISC for rewards, a 1099-INT for interest, and a 1099-B or 1099-DA for some crypto. Event contract gains get no form, and they are still taxable.
- 0:24On screen: Free on every account
- 0:35On screen: Kalshi and Polymarket taxes, in full: w2gmatch.com/gambling-taxes
More short films
- The King of the Casinos vs. the 90% Gambling Loss Rule
- A Wildlife Crew Films a High Roller. His CPA Ruins the Shot.
- A CPA Matches the Last W-2G Like It's a Title Game
- Vegas Matt, Mr. Hand Pay, Slot Queen: The Week in Gambling (Ep. 1) with Jack and Penny
- FanDuel Win/Loss Statement for Taxes: Where to Find It (2025 & 2026)
- How to Get Your Caesars Rewards Win/Loss Statement
- All videos
New films on YouTube: @W2gMatch · vertical cut: YouTube Short. Creators can share and clip these films: see the partner kit.
Free on every account
The easiest way to track your gambling: say it, snap it, hand it off
Say it
Speak or type the night. The AI box fills the entry.
Pick the place
One tap finds the casino near you and your players card.
Snap the W-2G
It reads the form and files it to the right tax year.
Your sessions, places and W-2Gs are filed as you go. At tax time, hand it off: the assistant reconciles them with your casino statements and IRS transcript in one file.
General information, not tax advice. The tax facts are stated, with their sources, on the linked answer pages; a licensed CPA or enrolled agent should review your return before it is filed.