QastLedger
Many Kalshi traders expect a 1099 at tax time showing their trading profit. Then January comes and either nothing arrives, or a form arrives that doesn't match what they made. Here's what Kalshi actually sends, what each form covers, and how to report the rest.
The tax forms Kalshi sends
According to Kalshi's help center, members who meet IRS reporting thresholds can receive these forms:
| Form | What it covers | Where it usually goes on your return |
|---|---|---|
| 1099-INT | Interest Kalshi paid you on your balance | Interest income on Form 1040 (with Schedule B if your total interest is over $1,500) |
| 1099-MISC | Credits and rewards from Kalshi | Usually "other income" on Schedule 1 |
| 1099-B | Proceeds from broker transactions related to crypto transfers | Form 8949 and Schedule D |
| 1099-DA | Digital asset transactions, reported by Kalshi's crypto partner, ZeroHash | Form 8949 and Schedule D |
If no forms show up in your account, Kalshi says it's most likely because you didn't meet the IRS thresholds for that form. For example, a 1099-INT is generally only required once interest reaches $10, and a 1099-MISC for rewards generally once they reach $600.
What isn't on a 1099: your trading profit
Notice what's missing from that list. Kalshi's help center doesn't describe a form that reports your gains and losses from trading event contracts. Instead, Kalshi gives you a yearly trading activity report:
- It's under Account → Tax Info in your Kalshi account.
- It shows your profit and loss for each year, calculated first-in, first-out, with fees and any rebates included.
- It's updated monthly, on the first morning of each month.
That report is your starting point. You report the trading results yourself. Most traders report Kalshi contracts as Section 1256 contracts on Form 6781, with gains split 60% long-term and 40% short-term. Read how Kalshi trades are taxed for the full picture.
Where to find your Kalshi tax forms
- Log in to Kalshi and open Account → Tax Info.
- Download your yearly trading activity report and any 1099 forms listed.
- Check your email too. Kalshi delivers some forms electronically through its tax form provider, Zenwork, with a secure download link.
Most 1099 forms are due to you by the end of January. Brokers generally have until mid-February to send a 1099-B. If you're expecting a form and don't see it by then, check Tax Info and your spam folder before contacting Kalshi.
How to report each piece
| What you have | How it's usually reported |
|---|---|
| Event-contract trading profit or loss | Form 6781 (60/40), then Schedule D. How the forms fit together |
| Positions still open on December 31 | Marked to market on Form 6781 at the year-end price. How mark-to-market works |
| Interest on your balance (1099-INT) | Interest income, taxed at your ordinary rate |
| Rewards and credits (1099-MISC) | Usually other income, taxed at your ordinary rate |
| Crypto activity (1099-B, 1099-DA) | Form 8949 and Schedule D, as sales of digital assets |
Common mistakes
- Assuming no 1099 means nothing to report. You owe tax on your trading profit whether or not a form arrives.
- Mixing interest into trading results. Interest on your balance is ordinary income on its own line, not part of your Form 6781 total.
- Copying Kalshi's report without checking it. Compare it with your own records, and make sure positions open at year end are accounted for. Section 1256 requires marking them to market, and a profit-and-loss report may only count closed positions.
- Counting crypto transfers as trading. Moving crypto in or out of Kalshi is separate from your event-contract results, and is reported separately.
- Forgetting fees. Your reported gain should be net of trading fees, counted once. See how Kalshi fees work.
Common questions
Does Kalshi report my trading to the IRS?
Any 1099 form Kalshi issues is also filed with the IRS. Either way, you're responsible for reporting all of your trading results, whether or not they appear on a form.
Why didn't I get a 1099 from Kalshi?
Most likely because your interest, rewards or crypto activity were below the IRS thresholds for those forms. Your trading results still need to be reported using Kalshi's trading activity report.
Can I file using Kalshi's trading activity report?
It's a good starting point. Check it against your own records, account for positions open at year end, and confirm the treatment with your tax professional before filing.
I lost money on Kalshi. Do I still need to report it?
You should, and you'll usually want to. A Section 1256 loss can offset other gains and up to $3,000 of other income, and may even be carried back to earlier years.
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.