Robinhood Crypto
Robinhood Crypto activity reports under Form 1099-DA from 2025 onward.
For 2025:
- gross proceeds reporting applies
- cost basis reporting remains limited
Transferred-in basis problems remain one of the largest reporting traps for Robinhood Crypto users.
Robinhood Stocks And Options
Stocks and options continue reporting through standard Form 1099-B workflows including:
- proceeds
- basis
- and wash-sale adjustments
For most users, this remains the cleanest part of the Robinhood reporting picture.
Robinhood ETH And SOL Staking
Robinhood ETH and SOL staking rewards are generally taxed as ordinary income at FMV on receipt under Revenue Ruling 2023-14.
Robinhood may issue Form 1099-MISC for staking rewards above USD $600.
The framework broadly matches standard IRS staking treatment.
How Are Robinhood Event Contracts Treated Internationally?
Robinhood Event Contracts are currently unavailable to retail residents in:
- Australia
- Canada
- the UK
- and Germany
The cross-border issue therefore mainly affects:
- US persons resident abroad
- dual filers
- and US taxpayers using Robinhood while living internationally
Australia
Robinhood Event Contracts are not currently available to Australian retail users.
For Australian residents who have accessed the platform, 2 tax issues arise under ATO rules.
First, any USDC or crypto used to fund or settle positions is a CGT asset. Each disposal is a CGT event regardless of how the winnings themselves are characterised.
Second, casual gambling winnings are generally treated as non-taxable windfalls under Australian tax law. That treatment applies to recreational activity. If the scale, frequency, and organisation of your prediction-market trading points toward a business-like operation, the ATO may treat profits as assessable income instead. The line is facts-and-circumstances dependent.
The ATO has not issued specific guidance on prediction market event contracts. The general gambling and CGT frameworks apply by analogy, but the position is not formally settled for this product type. Specialist advice is recommended before filing.
Depending on the nature of your activity, see our Crypto Investor Tax Guide or our Crypto Trader Tax Guide.
Canada
Robinhood Event Contracts are not officially available to Canadian residents. The cross-border issue affects US persons living in Canada and dual filers with Canadian tax obligations.
The CRA does not apply a single fixed label to prediction market activity. Classification depends on intent, frequency, and level of organisation, and produces materially different outcomes across 3 possible treatments:
- Casual gambling — generally treated as a non-taxable windfall
- Investing — capital gains treatment with 50% inclusion rate
- Business income — 100% of profits taxable at marginal income tax rates
The more organised, systematic, and profit-oriented the activity appears, the more likely the CRA is to treat it as business income rather than a casual windfall. High frequency, dedicated tools, and documented strategy all push toward the business income classification.
The underlying crypto disposal creates a separate tax event regardless of classification. Each USDC conversion is a disposition at CAD fair market value. The CRA's cryptocurrency audit program has historically assessed multiple prior years simultaneously, so historical gaps in prediction-market records carry compounding risk.
The regulatory environment for prediction markets in Canada is unsettled. The Ontario Securities Commission finalised action against Polymarket in 2025. No prediction market exchange holds a licence to operate in Canada as of mid-2026. Specialist advice is recommended before filing.
United Kingdom
Robinhood Event Contracts are not available to UK retail residents. The cross-border issue affects US persons living in the UK and dual filers with UK tax obligations.
HMRC has not issued specific guidance on event contracts or prediction markets. Under the general framework that applies by analogy, the treatment depends on the scale and nature of activity:
- Casual participation is likely treated as miscellaneous income under the other income rules. A £1,000 trading allowance applies. Amounts below that threshold do not require reporting
- Systematic, frequent activity conducted with a clear profit motive may be treated as trading income, subject to Income Tax and National Insurance at standard rates
- HMRC may also treat some positions as speculative investments subject to CGT if contracts are held beyond typical trading patterns
The underlying crypto disposal creates a separate CGT event regardless of how the winnings themselves are classified. HMRC treats USDC as a capital asset. Each conversion to sterling is a disposal. The CGT annual exempt amount is £3,000 for the 2025/26 tax year. Gains above that threshold are taxed at 18% for basic rate taxpayers and 24% for higher rate taxpayers.
HMRC has not formally settled the classification question for prediction market event contracts. The position should be treated as genuinely uncertain and specialist advice is recommended before filing.
Germany
Robinhood Event Contracts are not available to German retail residents. The cross-border issue affects US persons living in Germany and dual filers with German tax obligations.
Germany does not have a specific gambling income exemption equivalent to the UK or Australia. Prediction market winnings are generally assessed under §22 Nr. 3 EStG as miscellaneous income (sonstige Einkünfte), taxed at the individual's personal income tax rate of 0% to 45%.
The €256 Freigrenze applies to total miscellaneous income under §22 Nr. 3 EStG across all sources in a calendar year. If total miscellaneous income from prediction markets, staking rewards, and any other §22 Nr. 3 activity exceeds €256, the entire amount becomes taxable — not just the portion above the threshold. That cliff-edge structure is one of the most commonly misunderstood aspects of German crypto and prediction market taxation.
The underlying crypto disposal creates a separate event under §23 EStG. Each USDC conversion to EUR is a private disposal. If the USDC was held for less than 12 months, any gain is taxable. The €1,000 Freigrenze for private disposal gains under §23 EStG applies separately from the §22 Nr. 3 threshold.
The Finanzamt has not issued formal guidance on prediction market event contracts specifically. The §22 Nr. 3 framework applies by analogy. Specialist advice is recommended before filing.
Do You Need A Robinhood Event Contracts Tax Specialist?
Light activity across a small number of macro-market positions can often be filed cleanly without specialist support.
The complexity rises materially once activity includes:
- sports-event markets
- NFL parlays
- mixed Robinhood and Kalshi usage
- high trade counts
- cross-border filings
- or unresolved prior-year reporting
The honest question is not: “Does the spreadsheet total look reasonable?”
The real question is: “Would the classification hold up under examination?”
We are already seeing prediction-market traders discover that event contracts sit in a grey area between brokerage reporting, derivatives reporting, and gambling-income treatment. The rules themselves are only part of the challenge. The reconstruction workload and classification consistency often become the larger problem.
CountDeFi Is Your Robinhood Prediction Markets Tax Solution
Robinhood Event Contracts sit in 1 of the most unresolved corners of US tax law right now. The classification is unsettled, the OBBBA gambling-loss cap is live, Robinhood does not issue a 1099, and the Kalshi routing question adds another layer of uncertainty that most preparers have not worked through before.
At CountDeFi, we have. Since 2017, our team has worked with US prediction-market traders across every complexity level — from straightforward macro-market positions to high-volume sports-contract activity spanning multiple platforms and prior tax years.
We help traders:
- evaluate classification risk across all 3 frameworks before choosing a filing position
- model §1256, capital-asset, and gambling-income treatment side by side so the real-world tax impact is clear before filing
- reconstruct basis activity across Robinhood and Kalshi into a complete, consistent transaction record
- build defensible reporting positions that can withstand IRS examination
We produce audit-ready outputs across every form the filing may require:
- Form 6781 for §1256 positions
- Form 8949 and Schedule D for capital-asset treatment
- Schedule 1 for gambling-income positions
- cross-border reporting support where applicable
If your Robinhood Event Contracts activity is more than a handful of macro-market positions, talk to us before you file. Book a free exploratory call.
