Law Reversal Looming? Trump Eyes 2026 Gambling Winnings Tax Change
Donald Trump has indicated he may reconsider a 2026 tax law change that limits gambling loss deductions to 90% of winnings.Summary
A new tax law set to take effect in 2026 will limit the amount of gambling losses that can be deducted from winnings, potentially leading to increased taxes for gamblers. Currently, gamblers can deduct losses up to the amount of their winnings, but the new law will cap this deduction at 90%. This change has been criticized by the gaming industry as creating “phantom income,” as gamblers would be taxed on losses. President Trump has stated he will “think about” repealing the tax on gambling winnings entirely, a move that contrasts with the recent GOP tax bill. Several bipartisan bills have been proposed to repeal or modify the provision, but have stalled in Congress. The IRS has also increased scrutiny of gambling winnings in recent years, particularly for those earning over $100,000.
(Source：Kiplinger)