Prediction markets are booming. Is your Kalshi and Polymarket tax reporting IRS-ready?

We work with US traders to calculate, classify, and report prediction market gains accurately. Tell us about your trading and we'll map out the clearest, most defensible way to get your Kalshi, Polymarket, and event-contract taxes sorted properly.

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// PREDICTION MARKET TAX SPECIALISTS

CountDeFi.
Leaders in prediction market tax reporting.

CountDeFi provides specialised tax accounting for US prediction market traders. We're not just CPAs, we're data scientists who reconstruct your full trading history across Kalshi, Polymarket, and on-chain platforms to deliver accurate, defensible tax reports.

If your activity is complex, spans multiple platforms, or runs on-chain through Polymarket, CountDeFi can help with affordable plans. 

We operate online and in your timezone.

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Experienced across leading prediction market platforms
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The IRS Hasn't Ruled. Your Return Still Has To.

There is no IRS guidance telling you how prediction market gains are taxed. Depending on the facts, your Kalshi or Polymarket gains could be treated as Section 1256 contracts, capital gains, ordinary income, or gambling, and each one produces a different tax bill. We help you take a position you can actually defend.

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The Break-Even Trap Most Traders Miss

From tax year 2026, if your gains are treated as gambling, you can deduct only 90% of your losses against your winnings. That means a trader who wins 100,000 dollars and loses 100,000 dollars, net zero, can still owe tax on 10,000 dollars of phantom income. Getting your classification and records right is what keeps you out of that trap.

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Avoid overpaying Predictions Markets Tax

The difference between a realised gain, settlement payout, trading profit, or income event can materially change your tax outcome. Reviewing your trading history, settlement activity, and wallet records before filing helps ensure you're reporting correctly and paying only what the rules require.

// who we are

"Prediction market taxes aren't just about calculating gains and losses. The reporting position you take can materially affect your tax bill. CountDeFi helps traders identify the most appropriate and tax-efficient treatment based on their facts and circumstances."

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Chris Herbst

Founder

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// PREDICTION MARKETS  TAX experts

Defensible prediction markets reporting in a grey area of tax

Prediction market tax has never been straightforward. We've been reconstructing complex trading and on-chain activity since 2017, helping traders handle everything from a handful of Kalshi contracts to thousands of Polymarket positions across wallets.

Usually, the biggest challenge isn't the tax rate. It's two things: the data, and the classification. Polymarket runs on-chain with no 1099-DA, so every deposit, trade, and withdrawal has to be reconstructed from wallet activity. And with no IRS guidance, whether your gains are Section 1256, capital, ordinary, or gambling income changes what you owe.

These aren't edge cases. It's the reality of trading event contracts in 2026. Without solid data and a clear position, you can't know your real tax exposure. So how can you be confident your return holds up if the IRS asks?

CountDeFi reconstructs incomplete trading histories, traces activity across platforms and wallets, and delivers accurate, defensible tax reports you can file with confidence. Getting your prediction market taxes sorted doesn't have to cost a fortune. At CounfDeFi we do not bill by the hour. Instead, our pricing scales with transaction volume and complexity, and all plans include software fees, transaction reconciliation, and a complete tax report.

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1,000+

Clients Worldwide

1,400+

Crypto Tax Reports Completed

17M+

Crypto Transactions Reconciled

// services

Our prediction markets accounting services

// EXPERT SKILLS

Why prediction market traders hire CountDeFi

Prediction market traders often need professional help because the tax situation is complex, on two counts.  First, the records. Platforms like Polymarket run on-chain, often without sending tax forms to their customers. Traders can end up with thousands of transactions spread across wallets, exchanges, USDC transfers, deposits, withdrawals, market settlements, and closed positions.

Secondly, the rules. The IRS has not issued direct guidance on how prediction market contracts should be taxed. The same trading activity may be reported under different frameworks, with materially different tax outcomes.CountDeFi helps with both. We reconstruct your trading history from wallets, exchanges, and prediction market activity, then analyse the most appropriate tax treatment based on your facts and circumstances. The result is a complete filing position supported by documentation, calculations, and a methodology you can explain and defend.

// TAILORED PRECISION

Why tax software battles with complex crypto

Tax software is a great starting point, but prediction markets like Polymarket and Kalshi create challenges most platforms weren't built to handle. Traders often move funds between wallets, exchanges, USDC, and multiple prediction markets, while unresolved tax classification questions can materially affect the final tax outcome.

That's where CountDeFi comes in. We reconstruct the data, review the activity, and help determine a defensible reporting position. The result is a complete tax report you can file with confidence. CountDeFi is Koinly's #1 Global Partner, and we use Koinly's calculation engine as part of our reporting workflow. If you already have a Koinly portfolio, we can work directly from it.

// WORK WITH US

How to work with CountDeFi to calculate your
Polymarket taxes

At CountDeFi, we use our proprietary Precision 7 System to take you from data chaos to crypto tax clarity. We ingest data from Polymarket, Kalshi, wallets, exchanges, and DeFi protocols, identify missing records, reconcile transactions, and prepare a complete tax position. Where records are incomplete, we investigate. Where tax treatment is unclear, we help determine a defensible approach.

It starts with a free 15-minute consultation to discuss your trading activity and recommend the right pricing plan for your needs. We work remotely with clients across the US and globally. Book an obligation-free call today.

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// FIVE STAR Global REVIEWS

What our clients say

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Margaret

This company took the stress out of dealing with the IRS when it came to my Crypto account. They met over a video call the first day after I contacted them, set up a plan and by the end of a week, I had all the necessary documents to clear up my tax returns. Along the way they sent emails updating me as to the progress.

US

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Anon

I tried CountDeFi to navigate the chaotic mess of tracking my crypto transactions, gains, and losses. Initially skeptical, CountDefi came through. I found other crypto calculators lacking in complete blockchain analysis, but CountDeFi effectively traced my complex crypto journey and ultimately systematized order from disorder. Massive weight off my shoulders! The result was well worth the cost.

US

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Scott

Most of the regular CPA's in my area had no knowledge of how to report crypto tax. With the help of Bianca and the team at Count DeFi, we were able to do a deep dive into my entire transaction history from Day 1 and compile accurate tax reports based off of my entire transaction history across all exchanges and wallets.
CountDeFi is top notch with a team of knowledgeable people working together to accomplish the task at hand.

US

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Let's get your crypto taxes done.

Book a free, no-obligation exploratory call with us.