Which 1099 forms does Kalshi actually send?
The forms Kalshi sends
Kalshi currently issues three kinds of 1099 forms. A 1099-INT reports interest paid on cash balances held at the exchange. A 1099-MISC can report miscellaneous payments such as promotional credits or referral bonuses above the reporting threshold. A 1099-DA covers digital-asset transactions for customers who fund or withdraw in crypto.
None of these forms summarizes your trading. There is no 1099-B — the form brokerages use to report proceeds, cost basis, and gain or loss per position — for event-contract trades.
Why there is no 1099-B
Brokers must issue 1099-B for "covered securities." Whether CFTC-regulated event contracts fall under that regime has not been settled by the IRS, and Kalshi has so far treated them as outside it. The result: the IRS receives no independent record of your trading gains, and the entire reporting burden sits with you.
This is the single most important practical fact about prediction-market taxes. Active traders reconstruct their profit and loss from exported trade history — every fill, every fee — and compute their own totals.
What the forms do not tell you
A 1099-INT or 1099-MISC from Kalshi does not mean your trading was reported. It means your interest or promo income was. Traders who assume "the exchange handles the tax side" discover the gap in April, when there is no form summarizing thousands of trades.
The fix is boring and total: export your trade history on a schedule and keep it. The export guide in this cluster shows exactly where the data lives.
FAQ
Does Kalshi report my trading profits to the IRS?
Not on any current form. Kalshi reports interest (1099-INT), miscellaneous payments like promo credits (1099-MISC), and digital-asset transactions (1099-DA) — but no 1099-B covers event-contract trading gains.
I only received a 1099-INT from Kalshi. Is that everything I owe tax on?
Almost certainly not. The 1099-INT covers interest on your cash balance only. Net trading profits are taxable income you must compute and report yourself from your trade history.
Are promo credits taxable?
Promotional and referral credits can be reported as miscellaneous income on a 1099-MISC above the reporting threshold, and are generally taxable whether or not a form is issued.