Prediction markets

UrbanDog

I made a lot money from Kalshi and Predictit by buying and selling event contracts. For example, I bought a contract saying that Betr would not be the #1 sports app on Nov 16th, 2024 and I am right on the prediction so I made $1050.12 when the contract closes. The event contracts I made money from include things like what is the price range of bitcoin to who will win the election.

Does anyone know what category of income this fits into?

MatthewD

I am pretty sure that is considered Gambling income. Under the Income menu see Uncommon Income > Other Income and report it as Gambling Income not reported on a W2. Keep in mind that if you itemize you can deduct gambling losses up to the amount of gambling income.