Will Trump eliminate taxes on gambling wins? Here's the latest on POTUS' plans | Hindustan Times
Donald Trump has indicated he's open to eliminating federal taxes on gambling winnings, but no concrete plans have been announced.Summary
President Donald Trump recently stated he would consider eliminating federal taxes on gambling winnings, though he offered no specific plan or timeline. Currently, gambling income is taxable and reported on Form 1040, with amounts over $600 often triggering a W-2G form and potential withholding. The 2025 One Big Beautiful Bill Act (OBBBA) already eliminated taxes on tips, Social Security, and overtime, and Trump acknowledged this while considering the possibility of extending the exemption to gambling winnings. However, the OBBBA also reduced the deduction for gambling losses to 90% of winnings, potentially creating “phantom income” subject to taxation. Several legislative efforts are underway to reinstate the 100% loss-offset deduction, but none have yet been successful. Ultimately, any change to federal gambling taxes would require Congressional approval, and the issue is politically significant in states with large gambling industries like Nevada and New Jersey.
(Source：Hindustan Times)