Frequently Asked Questions

Yes. The IRS considers gains from prediction markets as taxable income. Whether reported as capital gains (Form 8949/Schedule D) or gambling income (Schedule 1, Line 8b) depends on your specific situation. Consult a tax advisor.

PolyTax uses FIFO (First In, First Out), which is the IRS default for securities. The earliest-acquired lots are disposed of first. All calculations use full decimal precision internally.

There is no definitive IRS guidance. PolyTax treats positions as capital assets reported on Form 8949 and Schedule D. Some tax professionals argue prediction markets should be reported as gambling income. Consult a qualified tax advisor.

The free preview scans your wallet and shows a summary of your gains/losses, trade counts, and years with activity. To download the full Form 8949, detailed transactions, and TurboTax CSV reports, you need to purchase a report.

Dust transactions are dispositions with a gain or loss under $0.01 — typically fractional shares from partial fills. They are legitimate Form 8949 rows but have no material tax impact since the IRS rounds to whole dollars.

We only read public blockchain data — your wallet address is all we need. No private keys, no wallet connections, no signatures. Your reports are stored securely and only accessible to you.

It compares positions computed from your trade history against Polymarket's official accounting snapshot. Matched positions confirm our calculations are correct.

Yes! Add as many wallet addresses as you need. All transactions are merged and deduplicated across wallets.