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බදු වාර්තා කිරීමේ ප්රධාන ක්රම
Prediction market ලාභ බදු වාර්තා කිරීම සඳහා බදු විශේෂඥයින් විසින් නිර්දේශ කරන ප්රවේශයන්.
Primary Sources
Kentucky Leads New State Push to Tax Prediction Markets, Testing Limits ...
Key Takeaways▸ Kentucky became the first state to explicitly tax prediction market platforms (14.25% on transaction fees), with Iowa (20%) and Illinois (50%) proposing similar measures, all focused on revenue capture rather than prohibition.▸ The federal agency that oversees trading markets (the CFTC) sued three states, arguing that prediction markets are a federal matter and states don't have the authority to regulate them, a direct challenge to any proposed state licensing requirements.▸ Taxing in-state business activity has strong legal precedent; However, tying taxes to prediction market contracts rather than general business activity could still draw legal scrutiny.Kentucky has become the first state to pass legislation explicitly taxing prediction market platforms, marking a shift in how states are approaching the fast-growing industry. The measure, included in a broader omnibus bill, applies taxes to platform revenue tied to in-state users, but stops short of establishing a regulatory framework for the exchanges.Rather than banning the platforms outright, lawmakers are exploring ways to fold them into existing gaming structures or capture revenue from their activity. Proposals in Illinois and Iowa take that approach further, pairing taxes on prediction market activity with licensing, reporting, and consumer protection requirements.That approach is now colliding with federal resistance. On April 2, the Commodity Futures Trading Commission (CFTC), alongside the U.S. Department of Justice, filed lawsuits against Arizona, Connecticut, and Illinois, challenging state enforcement actions against prediction market platforms. The agency argued that event contracts fall under its exclusive jurisdiction under federal law, a position that could complicate efforts in states like Illinois and Iowa to impose their own licensing and regulatory frameworks.The outcome of those lawsuits could shape how far states can go in attempting to regulate prediction markets.Kentucky targets prediction market revenue without licensing frameworkKentucky’s legislation introduces one of the clearest state-level efforts to tax prediction market platforms, without formally bringing them into a regulated gaming structure.House Bill 757 cleared the legislature on April 1, when the Senate passed the measure and the House concurred with changes before final passage, according to the state’s legislative record. The vote came just before the start of Kentucky’s veto period on April 2, whe...
How to File Taxes on Kalshi and Polymarket Earnings
Prediction markets have emerged as one of the fastest-growing (and most controversial) corners of American "finance". You can now place a contract on who wins the Super Bowl, whether the Fed raises rates, or even whether Jesus Christ returns before 2027. Platforms like Kalshi and Polymarket let Americans bet on almost anything - over $3.3B was wagered on the 2024 U.S. presidential race alone on Polymarket! That's some wild betting.But here's where things get tricky. What happens to those earnings? The IRS has yet to issue guidance, leaving things open to interpretation. Axios reports that 61% of Americans say prediction market trading is "closer to gambling," while only 8% say it's "closer to investing," according to a March 2026 Ipsos poll of 2,363 adults. Meanwhile, the platforms themselves insist they're offering regulated financial contracts, not bets.What that means for YOU is your earnings could be treated as ordinary income, capital gains... or something else. And that can swing your tax bill. This guide helps break down the different tax treatments and what you should consider for YOUR taxes.Are prediction market earnings taxable? Did you make some money on Kalshi or Polymarket? Maybe you bet correctly on a Fed rate decision or... made a good call on whether there'd be more tech layoffs this year or what gas prices would be tomorrow. Well, that good outcome is taxable, because it's income, period. Well, then the next question is: how should that income be taxed?How are earnings from Kalshi or Polymarket taxed?Because the IRS has not officially provided guidance for prediction market earnings, tax professionals currently recognize three viable approaches to how that income should be taxed, and each approach effectively leads to different outcomes.1. Ordinary IncomeThis is the most conservative and most common tax treatment that essentially reports your net profits from prediction markets as "Other Income" on Schedule 1, Line 8z of your Form 1040, with a label like "Kalshi prediction market earnings" or "Polymarket contract gains."Your gains are taxed at your ordinary income tax rate, which could be anywhere from 10% to 37% depending on your tax bracket. For example, if you're in the 24% tax bracket, and net $12,000 in Kalshi profits, you'd owe $2,880 in federal taxes with this approach. This treatment is straightforward and defensible, but high earners pay more taxes than if the income was treated differently.2. Capital Gains TreatmentSome tax profe...
Kentucky Set to Tax Event Prediction Markets in First for States
Kentucky would become the first state in the country to tax prediction markets such as Kalshi and Polymarket under a broad tax bill headed to the desk of Gov. Andy Beshear (D).
Kentucky Set to Tax Event Prediction Markets in First for States
Kentucky would become the first state in the country to tax prediction markets such as Kalshi and Polymarket under a broad tax bill headed to the desk of Gov. Andy Beshear (D). The state also plans to implement a new excise tax on fantasy sports platforms. The proposed new levies were tucked into HB 757, an omnibus tax policy measure that cleared the Republican-controlled legislature late ...
