Kalshi Taxes: Are Your Winnings Taxed? (2026)
Published 2026-06-18 · Last reviewed 2026-06-28
TL;DR
- Kalshi winnings are taxable income — the IRS treats event-contract gains as reportable.
- Kalshi issues tax forms (1099) to US users for their trading activity.
- Keep records of deposits, trades, and withdrawals; consult a CPA for your situation.
Short answer: yes, Kalshi winnings are taxable. Event-contract profits count as income, Kalshi reports to the IRS, and you'll get tax forms for your activity. Here's what to know before tax season.
Kalshi reports to the IRS
Kalshi is a CFTC-regulated US exchange and runs full identity verification (see is Kalshi legit). That means your trading activity is reported, and you receive a 1099 form summarizing it — just like a brokerage.
How event-contract gains are taxed
Gains are generally treated as ordinary income rather than capital gains. The exact treatment can depend on whether your activity is classified as investing or something else, so this is one area where a CPA's input pays for itself.
What about losses?
Losses may offset gains depending on classification. Keep complete records — deposits, withdrawals, and trade confirmations — so you (or your accountant) can reconcile the numbers against the 1099.
Before tax season
Download your 1099 from your Kalshi account, gather your transaction history, and don't assume small winnings are exempt — report them. Nothing here is tax advice; confirm specifics with a professional.
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Sources & further reading
- About Form 1099-B, Proceeds From Broker and Barter Exchange TransactionsInternal Revenue Service (IRS)
- Topic No. 419, Gambling Income and LossesIRS
- Event Contracts overviewCFTC
Frequently asked questions
Are Kalshi winnings taxed?
Yes. Profits from Kalshi event contracts are taxable income in the US. Kalshi reports activity to the IRS and issues tax forms to users, so winnings should be reported on your return.
Does Kalshi send a 1099?
Yes. Kalshi issues 1099 tax forms to US users summarizing their trading activity for the year. You'll typically access these in your account around tax season.
How are Kalshi event contracts taxed?
Event-contract gains are generally treated as ordinary income rather than long-term capital gains, but treatment can depend on your situation. A CPA can confirm how to report yours.
Can I deduct Kalshi losses?
Losses may offset gains depending on how your activity is classified. This is fact-specific — keep complete records and ask a tax professional how losses apply to you.
What records should I keep for Kalshi taxes?
Keep your deposit and withdrawal history, trade confirmations, and the 1099 Kalshi provides. Good records make reconciling your reported gains far easier.
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