The headline
Under the old rule, a $100k-in / $105k-out year netted to zero taxable income. Under the 2026 rule, only $94,500 of those losses count — so you owe tax on $5,500 of phantom income, despite losing money overall.
Assumes casual (non-professional) gambling. Enter your gross wins and losses for the year. For slot play, the IRS and Tax Court measure a win or loss per session (Notice 2015-21; Shollenberger). IRS guidance hasn't extended that to other wagers: for sports bets, table games and races, record each wager's result, and don't net winning bets against losing ones before entering them. Professional gamblers combine wagering losses AND business expenses under the same 90%-and-gains cap starting 2026.
Sources & References
Primary references used for this content
New Gambling Loss Deduction Limit
Plain-English breakdown of the OBBB 90% cap.
View on kiplinger.com
Will the OBBBA gambling change be reversed?
Repeal-effort status and practitioner analysis.
View on natptax.com
26 U.S.C. §165 — Losses
Statutory text; subsection (d) covers wagering losses.
View on law.cornell.edu
Slot machine wagering gains and losses
Proposed session-based safe harbor for slot play; other wagers are not covered.
View on irs.gov
✓4 primary sources; links re-checked on a weekly rotation by the source watcher
Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.