Form W-2G
An IRS form payers issue to report certain gambling winnings. Receiving one does not determine whether income is taxable; all gambling winnings are taxable whether or not a W-2G is issued.
Sportsbooks and casinos issue a W-2G above certain thresholds, but the form only governs payer reporting, not your obligation. Kalshi generally does not issue a comprehensive trading 1099, so the duty to reconstruct and report gains falls on the trader.
Form W-2G, Certain Gambling Winnings, is the information return that casinos, lotteries, and similar operators issue to report large gambling payouts to the IRS. It is associated with traditional wagering, not with exchange trading, and the distinction matters for how prediction-market activity is documented at tax time.
Kalshi operates as a regulated exchange rather than a sportsbook, and event-contract trading is generally not reported on a W-2G. It is also generally not reported on a 1099-B, the form brokers use for securities. In practice this means your trading profit or loss is typically self-reported, and the responsibility to keep complete records falls on you.
The absence of an automatic tax form is not a reason to skip reporting. The IRS expects income to be reported whether or not a form was issued, so exporting your full trade history and computing your net is the safe, correct approach. If you receive a 1099-MISC for rewards or referral credits, that is separate from your trading gains and is reported on its own.
If you win a large slot-machine jackpot, the casino hands you a W-2G. If you net a few thousand dollars trading Kalshi event contracts, you typically receive no equivalent form, so you compute the net yourself from your activity export and report it.
Frequently asked questions
Does Kalshi issue a W-2G?
Generally no. W-2G is associated with traditional gambling payouts from casinos and lotteries, not with exchange trading. Kalshi trading profit is typically self-reported rather than reported on a W-2G.
Does Kalshi send any tax form for trading?
Trading gains are generally not reported on a 1099-B either, so you usually self-report from your own records. You may receive a 1099-MISC for rewards or referral credits, which is separate from trading income.
Do I still owe tax if I get no form?
Yes. Income is reportable whether or not a form is issued. The lack of a W-2G or 1099 does not remove the obligation to report your net trading result.