Which tax forms each prediction market sends you
Three venues, three tax forms, three completely different numbers on them, and all of them are called a 1099. If you assume the form in your inbox reports your trading profit, you will be wrong on at least two of these platforms. One reports net redemptions, one reports net profit, and Kalshi issues four forms, none of which covers your event contract gains at all. This page is about which paperwork arrives and what number is on it. It is not tax advice, it does not tell you what you owe, and every venue below says the same about its own documentation.
The comparison
| Kalshi | Novig | PredictIt | |
|---|---|---|---|
| Form(s) | 1099-INT, 1099-MISC, 1099-B, 1099-DA | 1099-MISC | Form 1099 |
| Threshold | "certain reporting thresholds as defined by the IRS", no figure published | total redemptions ≥ $2,000 and net redemptions > $0, both | net profit ≥ $600 |
| What the figure represents | interest, credits/rewards, crypto proceeds, not trading profit | net redemptions (redeemed − purchased) | net profit (gross − losses − trading fees; withdrawal fees no longer count from tax year 2026) |
| Accounting basis | FIFO | redemption flow | realised profit |
| Delivered by | Zenwork, electronically | email and post | n/a |
| Timing | activity updated monthly, first morning of the month | first two weeks of February | n/a |
| US residents only | yes | yes | yes |
Kalshi issues four 1099s, and none of them is your trading profit
This is the part that surprises people. Kalshi's tax documentation, updated 22 June 2026, lists four forms:
| Form | What it contains |
|---|---|
| 1099-INT | interest payments from Kalshi |
| 1099-MISC | credits and rewards from Kalshi |
| 1099-B | transaction proceeds from broker transactions (crypto transfers) |
| 1099-DA | digital asset transaction reporting from ZeroHash |
Read the list again against what you actually did on the platform. Interest, rewards, crypto transfers, digital assets, your event contract trading gains are not on any of them.
Kalshi's answer to that is a Profit and Loss statement rather than a form. It uses First-In-First-Out (FIFO) accounting, the PnL figure "includes fees and any rebates", and the data is refreshed on the first morning of each month, so a mid-month check will not show the latest position.
Two practical consequences. If you traded all year and received no 1099, that is not necessarily an error, Kalshi says "if no 1099 forms appear in your account, it is likely because you did not meet the IRS thresholds required for issuance." And the rewards you earned from its incentive programmes may well arrive as a 1099-MISC while your trading result does not arrive as anything. See Kalshi promos for what those credits are.
Forms are delivered by Zenwork, Kalshi's tax form provider, by email, worth knowing because a form from an unfamiliar sender is easy to bin. Kalshi explicitly tells members to check spam.
Novig reports what you took out, not what you made
Novig issues a 1099-MISC, and it is precise about the quantity:
"It reports your net redemptions, total amount redeemed minus total amount purchased. This is the standard reporting method for sweepstakes platforms. This may differ from your total balance or what you think of as your 'winnings'."
Two thresholds, and both must be met:
- total redemptions for the calendar year of $2,000 or more, and
- net redemptions greater than $0.
Novig spells out the corollary: if you did not receive one, "either your total redemptions were under $2,000, or your net redemptions were $0 or less."
It also warns that "promotional credits, bonus Novig Cash, and voided transactions may be treated differently", which matters if you have been earning through the Points Program. See Novig promos.
Note the phrase "standard reporting method for sweepstakes platforms". Novig is a CFTC-designated contract market, Ludlow Exchange, LLC was designated on 16 June 2026, and it describes its tax reporting in sweepstakes terms. Those two facts sit oddly together, and we point it out rather than explain it, because explaining it would require knowing which regime governs the reporting, and we do not.
If the figure looks wrong, Novig's documented route is Live Chat with your transaction history, and it will issue a corrected 1099 if an error is confirmed. An incorrect address, it says, does not require a corrected form.
PredictIt reports profit, and dropped the withdrawal fee from the sum for 2026
PredictIt issues a Form 1099 to US residents with net profit of $600 or more in a calendar year, and publishes the formula:
Net Profit = Gross Profits − Losses − Trading Fees
That formula used to end with a fourth term, Withdrawal Fees. PredictIt's FAQ, updated on 22 September 2026, now says:
"Deposit and withdrawal fees are not included in the calculation."
and, in the same answer:
"Withdrawal fees were included through tax year 2025 and are excluded beginning in 2026."
From tax year 2026 onward the form reports your gains, minus your losses, minus the trading fees PredictIt took on your profits, and nothing else comes off. Withdrawal fees did count through tax year 2025, so a form for an earlier year may show a lower figure than the current rule would give for the same trading. Full worked example on PredictIt fees.
What is missing here, and why
Polymarket is not in the table. Its documentation covers wallets, bridging and fees; we have not found a tax reporting page stating which forms it issues, if any, and its structure, a non-custodial wallet holding a stablecoin, raises questions this page is not equipped to answer. An absence in our sources is not evidence that no obligation exists.
Betfair, Smarkets and Sporttrade are not in the table. The first two are UK exchanges under a different tax regime entirely; Sporttrade has no live product.
No threshold figure is given for Kalshi because Kalshi does not publish one, it refers to IRS thresholds without stating them. We are not going to fill that gap with a number from a third party.
The honest summary
The three venues that document their reporting all issue something called a 1099, and the figure on it means three different things. Before you reconcile any of them against your own records, check which quantity the form reports:
- Kalshi, interest, rewards and crypto. Not your trading result. That lives in a FIFO PnL statement instead.
- Novig, money out minus money in. Not your profit.
- PredictIt: profit, net of trading fees. Withdrawal fees stopped counting from tax year 2026.
Each venue says the same thing about its own documentation, and so do we: this is a description of what arrives, not advice on what to do with it. Kalshi's wording is as good as any, its statements are "intended as a tool to assist members", and "each member should consult with a tax professional".
