{"id":95989,"date":"2026-04-07T17:30:32","date_gmt":"2026-04-07T14:30:32","guid":{"rendered":"https:\/\/u1f987.com\/en\/?p=95989"},"modified":"2026-04-07T17:35:21","modified_gmt":"2026-04-07T14:35:21","slug":"taxation-of-prediction-market-winnings-confounds-experts","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/taxation-of-prediction-market-winnings-confounds-experts\/","title":{"rendered":"Taxation of Prediction Market Winnings Confounds Experts"},"content":{"rendered":"

Tax experts in the United States are at an impasse over how users of prediction platforms like Polymarket<\/a> and Kalshi should pay taxes on their winnings, according to Wired<\/a>.\u00a0<\/p>\n

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\u201cWe have a guidance vacuum. This puts taxpayers at a disadvantage,\u201d noted Patrick Camuso, an accountant specializing in digital assets.\u00a0<\/em><\/p>\n<\/blockquote>\n

The IRS<\/span> has not issued official guidelines on the taxation of prediction markets. However, there are several ways to report gains or losses.\u00a0<\/p>\n

Multiple Approaches, No Clear Answer<\/h2>\n

Some apply rules governing financial derivatives. The platforms themselves claim to offer financial contracts regulated by the CFTC<\/span>.\u00a0<\/p>\n

Others equate profits from prediction markets to gambling winnings or simply declare them as regular income and hope for the best, Camuso stated.<\/p>\n

The expert describes these platforms as \u201ca mix of bets, derivatives, and investment contracts.\u201d He assesses clients’ tax obligations on a case-by-case basis:<\/p>\n

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\u201cOur firm usually takes a more conservative stance for most clients due to the ambiguity of many tax rules.\u201d<\/em><\/p>\n<\/blockquote>\n

However, declaring income from prediction markets as gambling winnings is the most burdensome method. Instead of reporting the net amount, one must account for each bet, tracking wins \u201cper session.\u201d<\/p>\n

Trader Nate Meininger joked that the lack of guidance allows one to avoid reporting to the tax authorities. In reality, he is actively studying Kalshi’s tax documents and consulting with an accountant.<\/p>\n

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If you\u2019re wondering how to file your taxes for your prediction market income, you don\u2019t. You don\u2019t file it. The IRS isn\u2019t telling us how to file it because they don\u2019t want us to. Thank me later and follow me for more good tax advice<\/p>\n

\u2014 Nate Meininger (@NathanMeininger) March 13, 2026<\/a><\/p><\/blockquote>\n