Taxes4 min read

Will Kalshi, Polymarket, or Robinhood Send a 1099 for 2026? What Each Platform Actually Does

No 1099 does not mean no tax. Here is what Kalshi, Polymarket, and Robinhood actually report for 2026, and why the reporting gap is yours to close.

The short answer: do not count on a 1099

For the 2026 tax year, the three platforms most US traders use report almost nothing in a usable form. Here is where each one stands:

Platform1099 for event contracts?What you get
KalshiPartialIssues some 1099-B data, but not a comprehensive form covering all event-contract trades
PolymarketNoA non-custodial onchain platform; it does not issue 1099s
RobinhoodNoStates plainly it will not provide 1099s for event-contract trades; offers an "Event Contracts Annual Statement" it labels as not a substitute for a tax form

The reporting gap is the story. On a normal brokerage account, a 1099-B arrives in February and the numbers are mostly done for you. On prediction markets, that safety net is missing, and the obligation does not go away because the form did not show up.

No 1099 still means you owe

This is the part that gets people in trouble. A platform not sending a 1099 is a reporting failure on their end, not a tax exemption on yours. If you realized gains trading event contracts in 2026, you are required to self-report them, with or without a form. The IRS treats unreported income as unreported income regardless of whether a third party filed paperwork.

So the practical workflow for a prediction-market trader in 2026 is:

  1. Export your own trade history from each platform.
  2. Reconstruct realized gains and losses yourself.
  3. Report them on your return even when no 1099 backs them up.

For the per-trade economics that feed those gain calculations, the prediction market EV calculator shows the after-fee profit on each position, which is the number you are ultimately taxed on.

The classification question is still open

There is a second layer of uncertainty: even once you know your gains, it is not fully settled how they are taxed. As of late May 2026, the IRS has issued no formal prediction-market guidance. There is no Revenue Ruling, no Private Letter Ruling, and no IRS FAQ that directly resolves how CFTC-regulated event contracts are classified. That leaves traders and their preparers working from analogy to existing rules rather than from clear instruction.

We break down the competing treatments, capital versus ordinary and the Section 1256 question, in how prediction markets are taxed and event contract tax treatment. The platform-specific details live in the Kalshi 1099 guide, Robinhood event-contract 1099 guide, and Polymarket tax reporting.

What to do now

Do not wait for a form that is not coming. Pull your trade exports now while the data is easy to access, keep a running record of realized gains through the year, and assume the reporting is on you. If your platform does send something, treat it as a starting point to reconcile against your own records, not as the final word.

Sources

Frequently asked questions

Does Kalshi issue a 1099?
Partially. Kalshi provides some 1099-B data but does not currently generate a comprehensive Form 1099-B covering all event-contract trades, so you should reconcile against your own trade export.
Does Polymarket send tax forms?
No. As a non-custodial onchain platform, Polymarket does not issue 1099s. You are responsible for tracking and reporting your own gains.
Does Robinhood send a 1099 for event contracts?
No. Robinhood states it will not provide 1099s for event-contract trades. It offers an Event Contracts Annual Statement that it explicitly labels as not a substitute for a tax form.
Do I owe tax if I never got a 1099?
Yes. A missing 1099 is a reporting gap, not a tax exemption. Realized gains on event contracts are reportable whether or not a platform sends a form.
Has the IRS clarified how prediction markets are taxed?
Not as of late May 2026. There is no Revenue Ruling, Private Letter Ruling, or IRS FAQ that directly resolves event-contract classification, so treatment is still argued from analogy.

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