You Won Money on Kalshi or Polymarket. Here's What You Owe the IRS (and What Nobody Can Tell You Yet)
Prediction market winnings from Kalshi and Polymarket are taxable even without a 1099, but the IRS has issued no guidance on how — ordinary income, gambling income under Section 165(d) with a 90% loss-deduction cap starting in 2026, or Section 1256 60/40 treatment. Here are the forms to expect, the crypto-settlement wrinkle, and the recordkeeping that survives an audit.