Example
See What You Get
Real example: comparing tax methods for a trader with $4,200 in prediction market profits
TOTAL TRADES
47
3 platforms
NET P&L
+$4,200
+23.5% return
WIN RATE
57%
27W / 20L
BEST METHOD
§1256
saves $847
Tax Method Comparison
Section 1256 saves $847 compared to gambling treatment
How It Works
Three steps to your prediction market tax report
trades_2025.csv
✓ Detected: Kalshi format
147 trades found
Import Your Trades
Upload a CSV or connect via API. Auto-detects Kalshi, Polymarket, Robinhood & more.
Save $847
Compare Tax Methods
See all 4 IRS treatments side-by-side with real dollar amounts.
3 forms ready
Download Forms
Get IRS-ready PDFs — Form 8949, Schedule D, Form 6781, and CPA summary letter.
Polymarket
Kalshi
Robinhood
DraftKings
FanDuel
Import Your Trades
How to export from your platform:
Drop your CSV here or click to browse
Auto-detects Kalshi, Polymarket, Robinhood, DraftKings, FanDuel, Interactive Brokers formats
Browser-only
Nothing stored on servers
Credentials discarded
Used once, deleted immediately
No account needed
No signup, no tracking
Close tab = gone
Session data vanishes
Questions
Do I have to pay taxes on prediction market winnings?+
In the U.S., yes. Prediction market profits are taxable income. The IRS has not issued definitive guidance on the exact treatment, but most tax professionals recommend one of four approaches: ordinary income, capital gains, Section 1256 (60/40), or gambling income.
What's the difference between the 4 tax methods?+
Ordinary Income reports net P&L on Schedule 1. Capital Gains treats each position as an asset sale (Form 8949 + Schedule D). Section 1256 gives a 60/40 long-term/short-term split (Form 6781). Gambling Income reports gross winnings with losses deductible only if itemizing.
Is the P&L calculator free?+
Yes. Importing your trades, viewing your P&L breakdown, and comparing tax methods is completely free. Downloading IRS-ready PDF forms (Form 8949, Schedule D, Form 6781) is a one-time paid feature.
Which platforms are supported?+
Kalshi (API), Polymarket (on-chain), Robinhood, DraftKings, and FanDuel via CSV upload. Manual entry is also available for any platform.
Is my data stored on your servers?+
No. All data stays in your browser's session storage. API credentials are used once for import and immediately discarded. Close the tab and your data is gone.
What is Section 1256 and does it apply to Kalshi?+
Section 1256 provides favorable 60/40 tax treatment for regulated futures contracts. Kalshi is CFTC-regulated, making a Section 1256 argument defensible. However, the IRS hasn't issued specific guidance for event contracts yet. Consult a tax professional.
What is the OBBBA gambling loss cap?+
Starting in 2026, the One Big Beautiful Bill Act (OBBBA) caps gambling loss deductions at 90% of winnings. For tax years 2025 and earlier, losses are fully deductible up to winnings if you itemize.
Do I need to report prediction market losses?+
You should. Under the capital gains method, you can deduct up to $3,000 in net capital losses against other income per year, with unused losses carrying forward. This can save you money.