QastLedger
If you do your own taxes with consumer software, entering Kalshi results can be confusing. Most software supports Form 6781, but it's easy to miss, and it isn't always in the obvious place.
Check your software supports it
Most major tax software packages support Form 6781, but some only include it in their higher-priced tiers, the ones meant for investors. If you can't find it in a free or basic version, check which tier includes "Section 1256 contracts" or "Form 6781" before you pay to upgrade.
Where to find it
Menus differ between products and change from year to year. Look in the investment income section for something like:
- "Section 1256 contracts and straddles"
- "Form 6781"
- "Futures or regulated futures contracts"
If there's a search box, searching "6781" or "1256" is usually the fastest route.
What to enter
- Account name: for example, "Kalshi".
- Net gain or loss: your total net Section 1256 result for the year, after fees and including year-end mark-to-market on open positions. You enter one total per account, not every trade.
The software then splits it 60/40 for you. Don't split it yourself first, or it will be split twice.
If Kalshi's tax statement lists figures that differ from your own records, for example because it treats fees differently, talk to a tax professional about which number to use and how to note the difference.
Check the result before you file
Open the finished Schedule D and confirm:
- Line 4 shows 40% of your Form 6781 net result, as short-term.
- Line 11 shows 60%, as long-term.
- Your Kalshi results appear only there, and not again as individual trades on Form 8949.
Polymarket trades under holding-period treatment go on Form 8949 instead. See Form 6781 vs. Form 8949 for how the forms fit together.
This guide is general information, not tax advice. Tax treatment of event contracts is still evolving, so confirm how it applies to you with a tax professional.