How to file Robinhood prediction market taxes, step by step.

Robinhood’s tax article says “Robinhood doesn’t provide a 1099 for event contract trades”. What it sends instead is one event contracts annual statement for each calendar year. It arrives in late January or early February. Robinhood’s tax and statements article gives the path.

Account, Reports and statements, Annual reports

1. Open Account in the Robinhood app.
2. Select Reports and statements.
3. Open Annual reports and download the year.

What the statement lists: six items Robinhood names

Robinhood lists six things on the statement:

• Individual event contract transactions
• Closing dates
• Costs
• Proceeds
• Fees and commissions
• Net profits and losses

Robinhood calls the statement “the authoritative record of all costs, proceeds, and net P&L for the year.” The same article says “The annual statement is not a substitute tax reporting form.”

The statement is not the consolidated 1099. That PDF covers Robinhood’s other products and was due by February 17, 2026, for tax year 2025. Every Robinhood document is listed on Robinhood tax forms.

Realized profit & loss leaves fees out

The quick check is in the app: Investing, then Realized profit & loss, then Prediction markets. Robinhood says this view doesn’t include fees. The statement includes them, under Total fees and commissions. So the app’s figure can differ from the statement’s.

Settlement timing can also split the two. The other causes Robinhood names are on Robinhood trade data.

Two commission rules in one 2026 year

Robinhood changed its commission on June 1, 2026. Before that it was a flat $0.01 a contract. From June 1 it is a share of the price, so a 2026 statement carries both rules. Robinhood’s tax article still describes the flat fee.

Fee wording in the tax article

“Robinhood charges $0.01 per contract and exchanges typically charge ~$0.01 per contract”

Source

Commission

k x p x (1 - p) x c, k = 10% (5% with Gold), rounded up to $0.01, at most $0.01 a contract

Source

Robinhood’s worked cost

100 Yes contracts at $0.90 with a $0.01 exchange fee: a $0.45 commission and $91.45 in all with Gold, $0.90 and $91.90 without

Source

Exchanges add their own fee on opening and closing trades. On Kalshi contracts it is $0.01 a contract, each side, per Robinhood’s fee schedule.

A position is everything bought in one market on one side. Each one becomes a row with these columns:

The opening date comes from History

Robinhood’s list of statement contents names closing dates. It does not name opening dates. Robinhood says its History tab, filtered to Event contracts, shows all trades, payouts and fees. Robinhood says History shows every trade, and selecting a trade shows its details and its trade confirmation. Form 8949 asks for the date each position was acquired.

Payouts other than $1 or $0

Most contracts pay $1 or $0 at settlement. Robinhood’s settlement article lists the cases that pay something else:

A tie or draw

In a boxing or pro football match, typically $0.50 to both sides

Source

A canceled event

Settled by the exchange at $0, at the last traded price, or another nonstandard payout

Source

A player who does not take part

The contract may be voided or settle at a fallback value, such as $0.50

Source

Combos

$1 only if every leg wins; nonstandard legs multiply, so two $0.50 legs and two winning legs pay $0.25

Source

Fractional contracts have one more rule. Proceeds round down to the cent: 0.05 contracts at a $0.752 settlement pay $0.03.

Each one is a row like any other, with the payout as its proceeds. A contract sold before settlement uses the sale instead: total proceeds less total cost, fees on both sides.

A contract still open at year end is not on the statement’s list. Robinhood lists no December 31 value for it. What happens next depends on the route:

• Standard capital: nothing until it closes. It is reported in the year it closes.
• Gambling: nothing until it settles.
• Section 1256: it is treated as sold at its value on the last business day of the year, under §1256(a)(1). That needs a December 31 price for each open contract.

Robinhood already marks futures this way. Its consolidated 1099-B has a Section 1256 section for them. Robinhood says it provides no 1099 for event contracts.

Four exchanges, none named per trade

Robinhood’s disclosure names four exchanges: KalshiEX LLC, ForecastEX, LLC, Rothera Exchange and Clearing LLC, North American Derivatives Exchange, Inc. Which one a trade went to is not explained in its event contract help articles. Its help articles therefore do not say which exchange’s closing price belongs to a given contract.

There is no IRS guidance on how event contracts are taxed. Robinhood says the same: “The IRS hasn’t issued specific guidance on the tax implications of trading event contracts.” Each route takes the same rows to different forms:

The IRS forms are Form 8949 and Form 6781, and gambling is covered in IRS Topic 419. Each route is worked in these guides:

• Form 6781 for event contracts
• Form 8949 and capital gains
• The 90% gambling-loss limit from 2026

One worked year under all three is on Robinhood taxes.

Robinhood futures on the same return

Futures traded at Robinhood have their own Section 1256 figure on the consolidated 1099-B. That figure is its own line. Robinhood says it provides no 1099 for event contracts.

Each trade matched to its exchange

Realize reads each closed position on the statement and matches it to the exchange and market it traded on. Robinhood names four: Kalshi, ForecastEx, Rothera and the North American Derivatives Exchange. A row Realize cannot match is shown to you, not guessed.

Open positions at December 31

For a contract still open on December 31, Realize takes the matched exchange’s published close. A contract with no published close is named and left off Form 6781.

The year priced three ways

The matched rows are priced under the three common routes, Section 1256 included for people who file that way, and the forms for each route are built from the same rows.