What Tax Documents Does Kalshi Provide?
Kalshi says it issues Form 1099-INT for interest, 1099-MISC for credits and rewards, 1099-B for broker transactions such as crypto transfers, and 1099-DA for digital-asset reporting, each only when you meet the IRS threshold. It also offers a yearly profit and loss statement under Account → Tax Info. None of these settles how your event-contract results should be taxed; the IRS has not published guidance specific to event contracts that we could find.
Damage Report can help you understand and reconcile your trading activity. It does not determine how that activity should be reported on your tax return.
This page summarizes what Kalshi and the IRS publish. It is not tax advice. For your situation, consult a qualified tax professional.
What Kalshi says it issues.
Kalshi’s help center lists these forms, issued only to members who meet the IRS thresholds for each:
- 1099-INT for interest.
- 1099-MISC for credits and rewards from Kalshi.
- 1099-B, which Kalshi describes as covering proceeds from broker transactions, such as crypto transfers.
- 1099-DA for digital-asset reporting through ZeroHash.
Kalshi says forms are available on the Tax Info page under Account, that some are delivered electronically by its tax-form provider, Zenwork, in an email with a secure download link, and that if you don’t see a form you likely didn’t meet the IRS threshold for it. Kalshi’s page doesn’t list the dollar thresholds.
The P&L statement is not a tax form.
Kalshi also offers a yearly profit and loss statement under Account → Tax Info. Kalshi says it summarizes profits, losses, and fees using FIFO, includes fees and rebates, and is updated on the first of each month. Kalshi states that its P&L and tax information are not tax advice and that it can’t advise members on their taxes.
How event-contract results are taxed is not settled.
We did not find IRS guidance that specifically addresses how gains and losses on event contracts like Kalshi’s should be treated. Tax practitioners have described several possible treatments, including capital gains, ordinary income, gambling income, and treatment under section 1256, and they disagree about which applies. Section 1256 lists regulated futures contracts and certain options but does not name event contracts. The IRS’s Form 1099-B instructions do not mention prediction markets, and its gambling guidance does not mention them either.
Because of that uncertainty, the forms you receive may not cover your trading results, and the right reporting depends on your circumstances. A tax professional can advise you.
Records that help, whatever the treatment.
- Your Kalshi P&L statement and any forms you received.
- Your trading history: fills, settlements, and fees.
- Funding records: deposits, withdrawals, credits, and interest, which Kalshi reports separately from trading.
Where Damage Report fits.
Damage Report helps you understand and reconcile your Kalshi activity: realized and unrealized results, fees, and funding, with the records behind each number and CSV exports of fills and settlements. It is not tax software, is not a tax statement, and doesn’t determine tax treatment. Its figures may not match Kalshi’s forms or statement; Kalshi’s official records take precedence.
Primary sources
- Kalshi Help Center: What tax documentation does Kalshi provide?
- IRS: Instructions for Form 1099-B
- IRS: Instructions for Forms 1099-MISC and 1099-NEC
- IRS Tax Topic 419: Gambling income and losses
- 26 U.S.C. § 1256 (Cornell Legal Information Institute)
- Seward & Kissel: prediction markets, section 1256, and other tax issues (practitioner commentary, not a primary source)
Sources checked October 5, 2026. Kalshi can change its products, fees, and documents; its current pages take precedence over this guide.