With the new tax bill, will I still be able to claim my gambling losses against my wins?
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Concerning the new tax law, are there any thoughts for us gamblers, VP players who receive numerous W-2Gs? Appears unless you itemize, you can’t deduct your losses from wins and that you would have to take a hit for the income if you don’t itemize.
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With the tax code changes, will casual gamblers that do not itemize deductions be able to offset winnings with gambling losses? Hope so, or I will have to avoid W-2Gs at all cost.
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Given the recent passage of the tax reform bill, could you please provide some insight on how this will impact the recreational gambler? Most everything I have read focuses on the professional gambler and how expenses are to be included with losses. For the recreational gambler, will Schedule A still include a line item to deduct losses? With the increase in the standard deduction, this could also have an impact on those of us who receive W2-G forms.
Happy Tax Day (hey, at least it doesn't come around again for an entire year).
Though many of the changes to the new tax law enacted by Congress late last year won’t affect tax liabilities until you file your 2018 return in 2019, all taxpayers are feeling the impact since the new law went into effect on January 1.
As for that impact, according to numerous sources, the piece that concerns gamblers changed only slightly and won’t affect 98% of us. Though disallowing losses against wins was on the negotiating table, it didn’t make the final bill, so that part of it remains the same: You can claim losses against wins, but only if you itemize your deductions.
Two things have changed. First, the standard deduction is much higher. It’s gone up from $6,300 for singles and married filing separately and $12,600 for married filing jointly to $12,000 and $24,000, respectively. The nonpartisan Tax Policy Center estimates that the number of itemizers will fall from about 49 million to 10 million as a result; the American Gaming Association estimate is even higher at a 90% drop-off. Both, however, consider it a net gain for most gambler-taxpayers, who either haven’t had to itemize their gambling activity and have remained under the W-2G radar or can now take the standard deduction to come out ahead over itemizing losses against wins.
We align with Jean Scott and Marissa Chien, who write in Tax Help for Gamblers, “Many taxpayers find they need to figure it both ways to see which has the lowest overall tax obligation.”
The second change affects the few taxpayers who meet the IRS’ strict definition of “professional gambler” and file as such. Previously, professionals were allowed to show a net loss if their gambling losses, plus their business expenses related to gambling, were more than their winnings. However, under the new law, pro gamblers are no longer allowed to claim a net loss for the year; winnings minus losses and expenses can only zero out. (This limitation expires after 2025, unless Congress extends it between now and then.)
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Jeffrey Small
Apr-15-2018
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[email protected]
Apr-15-2018
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Ken Orgera
Apr-15-2018
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Michael Pinnix
Apr-15-2018
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Roy Furukawa
Apr-15-2018
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hawks242424
Apr-20-2018
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