Coinbase tax forms: what Coinbase says about prediction markets, and what 1099-DA covers

Coinbase’s prediction markets page splits the accounts in plain words. Futures accounts are kept by Coinbase Financial Markets, a futures commission merchant registered with the CFTC and a member of the NFA. Spot accounts, where crypto sits, are kept by Coinbase Inc., which is not CFTC registered and not an NFA member. The CFM Account Agreement names what the futures side carries: futures contracts or event contracts cleared through any derivatives clearing organization. Coinbase’s help pages say the markets are operated by Kalshi, a CFTC-regulated exchange. What Kalshi itself sends its own account holders is in Kalshi tax forms.

Coinbase’s Form 1099-B page draws the same line for tax forms: crypto proceeds are reportable on Form 1099-DA; futures and equities on Form 1099-B. Coinbase’s documents place a prediction contract in the futures account, and its Form 1099-DA page describes crypto sales. Coinbase’s payouts article calls a trade a “derivative transaction”.

Coinbase BTC contracts: crypto price underneath, event contract on top

The clearest case is a contract on a crypto price. BTC 15 min and ETH 15 min contracts resolve on the CF Benchmarks Real Time Index (BRTI). The underlying is crypto; the instrument is still an event contract held at CFM, and no bitcoin changes hands.

Futures accounts

Kept by Coinbase Financial Markets, a futures commission merchant registered with the CFTC and a member of the NFA

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Crypto (spot) accounts

Kept by Coinbase Inc., which is not CFTC registered and not an NFA member

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What the CFM account carries

Futures contracts or event contracts cleared through any derivatives clearing organization

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Crypto against futures

Crypto proceeds are reportable on Form 1099-DA; futures and equities on Form 1099-B

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How the help pages describe a trade

A “derivative transaction”, which unsettled proceeds can fund

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Crypto-price contracts

BTC 15 min and ETH 15 min contracts resolve on the CF Benchmarks Real Time Index (BRTI)

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The tax information page lists Form 1099-DA, Form 1099-MISC, Form 1099-B and Form 1099-DIV. It says Coinbase Taxes reflects activity on Coinbase.com, including CCM brokerage tax forms; CFM is not named.

The Form 1099-B page names its criteria: for US customers who sold equities, futures or perpetuals, or OTC options (institutional only). Event contracts are not on the list. For tax year 2025, the form is provided in early 2026. The download page widens the 1099-B to customers who traded futures, commodities, options and other financial instruments. Coinbase’s tax documents explainer says customers who traded futures via Coinbase Financial Markets “may receive a Form 1099-B”. None of these pages says whether an event contract counts as a futures contract for Form 1099-B.

Coinbase’s two thresholds for one 1099-MISC

The two Coinbase pages that describe Form 1099-MISC give different lines. The tax information page says one goes to customers who “earned at least $2,000 in crypto and miscellaneous income”. The download page says “If you earned $600 or more in crypto income”. Both describe crypto income, and neither mentions prediction markets.

What Coinbase’s prediction pages and agreement say about tax

The prediction markets introduction says only: “Prediction markets gains may be considered taxable income”. The CFM Account Agreement, written for futures and event contracts, frames tax around crypto: “The tax treatment of Digital Asset transactions is uncertain”; CFM reports to tax authorities where the law requires. Coinbase has not published which form, if any, CFM issues for event contracts.

Forms Coinbase lists

Form 1099-DAForm 1099-MISCForm 1099-BForm 1099-DIV

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What Coinbase Taxes covers

Activity on Coinbase.com, including CCM brokerage tax forms; CFM is not named

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1099-B

For US customers who sold equities, futures or perpetuals, or OTC options (institutional only)

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Form 1099-B for 2025

Provided in early 2026

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Form 1099-B via Coinbase Taxes

For US customers who traded futures, commodities, options and other financial instruments

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Futures through CFM

Customers who traded futures via Coinbase Financial Markets “may receive a Form 1099-B”

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1099-MISC

For at least $2,000 in crypto and miscellaneous income, on the tax information page

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Form 1099-MISC, second page

For $600 or more in crypto income, on the download page

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Taxes

“Prediction markets gains may be considered taxable income”

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Tax language in the CFM agreement

“The tax treatment of Digital Asset transactions is uncertain”; CFM reports to tax authorities where the law requires

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Contracts can be bought with settled USD and USDC. Funding draws on the available cash, USD and USDC, in the main Coinbase account; closed positions flow back to it. The CFM agreement says margin is met in USD cash, unless CFM says otherwise.

Coinbase’s App API records the conversion for futures. Its transaction type fcm_futures_usdc_sell is a “conversion of USDC to USD to support the anticipated margin requirement for a futures trade”. Coinbase’s Form 1099-DA page counts crypto-to-fiat exchanges, such as converting Bitcoin to USD, as a sale for that form. Buying a prediction contract with USDC is where the documents stop: Coinbase has not published whether it is a sale of USDC, which transaction type records it, or how it is reported. The IRS describes the form itself on its About Form 1099-DA page.

Where a Coinbase prediction payout lands

Winnings are credited to the Prediction Market USD balance, then moved to the primary USD balance. Cash transfers run every two hours from 6:00 AM to 4:00 PM ET on business days, from the Prediction Markets balance to the primary account. The CFM agreement adds that excess cash moved from the CFM account to the Coinbase Inc. (CBI) account loses the treatment the CEA and CFTC rules, Part 190 included, give funds held in futures accounts. The contract is CFTC-regulated; the dollars after the sweep are held by the crypto company.

Funding

Settled USD and USDC

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Where funding comes from

The available cash, USD and USDC, in the main Coinbase account; closed positions flow back to it

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Margin currency

USD cash, unless CFM says otherwise

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fcm_futures_usdc_sell

Conversion of USDC to USD to support the anticipated margin requirement for a futures trade

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A sale for Form 1099-DA

Crypto-to-fiat exchanges, such as converting Bitcoin to USD

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Buying a contract with USDC

Coinbase has not published whether it is a sale of USDC, which transaction type records it, or how it is reported

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Winnings

Credited to the Prediction Market USD balance, then moved to the primary USD balance

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Cash transfers

Every two hours from 6:00 AM to 4:00 PM ET on business days, from the Prediction Markets balance to the primary account

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Excess cash swept to the CBI account

Excess cash moved from the CFM account to the Coinbase Inc. (CBI) account loses the treatment the CEA and CFTC rules, Part 190 included, give funds held in futures accounts

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Coinbase’s payouts article says “Your daily statement is the official record of all settled payouts.” Each payout sits under “The Following Event Contracts Settled Today” on the daily statement, as a credit marked CR. In-app history can lag during busy settlement periods; where they differ, the daily statement reflects the settled amount.

Under the CFM agreement, confirmations and statements are deemed conclusively accurate unless objected to in writing within 24 hours. In the app, each closed-market transaction line shows status, market, outcome choice, payout, number of contracts owned, fill price, profit and payment method. The portfolio page carries two PnL figures. Top amount: “sum of current unrealized PnL and daily realized PnL”. Bottom amount: “sum of daily realized PnL which may not include the current day’s amount”.

Official record

The daily statement, which in-app history can briefly lag

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Where a payout appears

Under “The Following Event Contracts Settled Today” on the daily statement, as a credit marked CR

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When the app and the statement differ

The daily statement reflects the settled amount

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Objecting to a statement

Confirmations and statements are deemed conclusively accurate unless objected to in writing within 24 hours

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What the in-app P&L covers

Top amount: “sum of current unrealized PnL and daily realized PnL”. Bottom amount: “sum of daily realized PnL which may not include the current day’s amount”

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A transaction line

Status, market, outcome choice, payout, number of contracts owned, fill price, profit and payment method

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Coinbase has not published a CSV or bulk export of prediction fills or settlements; its help pages describe the app screens and the daily statement. On the Coinbase App API, the transaction types include none for prediction markets or event contracts. Advanced Trade’s List Fills endpoint is filtered by spot, future, equity, option group or future group; no prediction product type. Coinbase’s own agent connector lists prediction markets as “coming soon”. Outside the retail account, Coinbase documents Coinbase Derivatives: Predictions, Coinbase’s own prediction exchange API, for member firms and FCMs, priced in USDC; Sandbox only, with production “coming soon”.

Kalshi has a public API, and it returns fills for the member that placed the order; for a Coinbase trade that member is Coinbase Financial Markets, so a Coinbase customer cannot read their trades from Kalshi’s API. Its FCM endpoints are for FCM clearing members only, and its documentation does not mention Coinbase. Kalshi operates the markets, and a personal Kalshi key returns only that person’s own Kalshi account. Every step of a Coinbase year built from these documents is in how to file Coinbase prediction market taxes.

Export of prediction trades

Coinbase has not published one: the help pages describe the app screens and the daily statement

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Coinbase App API

Its transaction types include none for prediction markets or event contracts

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Advanced Trade fills

Filtered by spot, future, equity, option group or future group; no prediction product type

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Coinbase’s agent connector

Lists prediction markets as “coming soon”

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Coinbase Derivatives: Predictions

Coinbase’s own prediction exchange API, for member firms and FCMs, priced in USDC; Sandbox only, with production “coming soon”

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Kalshi’s API

Returns fills for the member that placed the order; for a Coinbase trade that member is Coinbase Financial Markets, so a Coinbase customer cannot read their trades from Kalshi’s API. Its FCM endpoints are for FCM clearing members only, and its documentation does not mention Coinbase

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There is no IRS guidance on how event contracts are taxed. Of the people we’ve seen file, these are the most common ways they file: standard capital on Form 8949 and Schedule D, Section 1256 on Form 6781, and gambling on Schedule 1 with losses on Schedule A. Each route, the fees and a position open at December 31 are worked through in Coinbase prediction market taxes.