Starting in 2026, gamblers won’t be able to deduct all their losses. Dr. Friday breaks down what’s changing and who it affects.
Transcript
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Bad news for gamblers. Starting in 2026, they can deduct only ninety percent of the losses against their taxable winnings. Right now, gamblers can report total winnings on Schedule 1 of the 1040 and deduct losses on Schedule A up to the amount of their winnings.
So this is going to mean a higher tax for many people that are actually going to win—I don’t know, the Super Bowl or whatever you might gamble on. Just one of those things. So be sure that you’re tracking that information.
A lot of times, the casinos will do a pretty good job of providing us the proper forms, but it is your responsibility to turn that in. If you have any questions, just check me out on the web.
You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.