1. Tax year and filing details
Only itemizers can claim any gambling-loss deduction at all — this predates OBBBA. A professional gambler groups wagering losses with directly related business expenses before comparing against the cap.
2. Your numbers
Use your actual, substantiated winnings and losses for the year — W-2G forms, wagering tickets, or a session log. This calculator does not verify either figure.
Fill in your winnings and losses, then click Calculate.
Your gambling-loss deduction
What this does not cover
- Not a full tax return. This computes one deduction cap — not your total itemized deductions, whether itemizing beats the standard deduction, other credits, or state tax treatment (many states do not allow the federal gambling-loss deduction at all).
- Does not verify your figures. You supply winnings and losses directly; this tool does not check them against a W-2G, a session log, or any other record.
- No state-by-state modeling. Several states disallow gambling-loss deductions entirely at the state level, independent of this federal cap.
- Repeal is not modeled. Bills to restore the full 100% offset have been introduced but had not passed as of this tool's last fact-check — this calculator applies current law only.
Common questions
What is the new 90% gambling loss deduction limit?
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, amended IRC Section 165(d) so that, for tax years beginning after December 31, 2025, your gambling-loss deduction is capped at the lesser of your actual, substantiated losses or 90% of your winnings. This is on top of the pre-existing rule that losses can never be deducted beyond winnings in the first place.
What is "phantom income" and how can I owe tax if I broke even?
Once your losses are at least 90% of your winnings — meaning you broke even or lost money overall — your deduction is capped at exactly 90% of winnings no matter how much more you actually lost. The remaining 10% of winnings is taxed with no loss to offset it, and it does not carry forward. A gambler who wins $50,000 and loses $50,000 now owes tax on $5,000 of income despite walking away even.
Is this permanent, or does it expire like other OBBBA provisions?
It is permanent law with no scheduled sunset, unlike several other OBBBA individual-tax provisions (the SALT cap increase and the tips/overtime deductions both expire after 2028 or 2029). Multiple repeal bills, including one nicknamed the FAIR BET Act, have been introduced in Congress, but none had passed as of this tool's last fact-check — treat repeal as a watch item, not current law.
Do I need to itemize to claim any gambling-loss deduction?
Yes — this rule predates OBBBA and is unaffected by it. Gambling losses are only deductible on Schedule A, Line 16, for a taxpayer who itemizes. If you take the standard deduction, your full winnings are taxable and none of your losses offset them, cap or no cap.
Does this apply to professional gamblers too?
Yes. OBBBA permanently folded a professional gambler's trade-or-business wagering expenses into this same Section 165(d) limitation — a rule that was otherwise set to expire after 2025. A professional's wagering losses and directly related business expenses are grouped together and capped at 90% of winnings, the same as a casual gambler's losses alone.
Is this tax advice?
No. This calculator applies the published federal 90%-of-winnings cap to the numbers you enter. It does not verify your winnings, losses, itemizing decision, or filing status, and it is not a substitute for reviewing IRS guidance or consulting a qualified tax professional before you file.