90% limit for gambling losses
October 12th, 2026 at 4:58:57 AM
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Interesting take by a tax filing site about the 90% gambling deduction limit of you're a professional gambler.
https://support.taxslayer.com/hc/en-us/articles/32550494584205-Should-a-Professional-Gambler-File-Schedule-C-or-Report-a-W-2G
They're saying it's 90% deduction of your gambling wins, including gambling expenses.
Tax Year 2026 and Later:
Gambling winnings: $400,000
90% limitation: $360,000
Total documented losses and expenses: $440,000
Allowed deduction: $360,000
Taxable gambling income: $40,000
So no matter what, you owe tax on at least 10% of your gambling wins
https://support.taxslayer.com/hc/en-us/articles/32550494584205-Should-a-Professional-Gambler-File-Schedule-C-or-Report-a-W-2G
They're saying it's 90% deduction of your gambling wins, including gambling expenses.
Tax Year 2026 and Later:
Gambling winnings: $400,000
90% limitation: $360,000
Total documented losses and expenses: $440,000
Allowed deduction: $360,000
Taxable gambling income: $40,000
So no matter what, you owe tax on at least 10% of your gambling wins
Craps is paradise (Pair of dice).
Lets hear it for the SpeedCount Mathletes :)
October 12th, 2026 at 5:45:49 AM
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Why do we worry about IRS? Most gamblers have a negative win from gambling income. Occasionally, I saw somebody winning more than a million dollars a jackpot, but they often tipped out thousands to the dealer.
Based on what you say above, every gambler must pay IRS a positive tax, no matter they win or lose.
Based on what you say above, every gambler must pay IRS a positive tax, no matter they win or lose.
Last edited by: aceside on Oct 12, 2026
October 12th, 2026 at 6:03:27 AM
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Quote: acesideMost gamblers have a negative win from gambling income.
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Not in this forum
October 12th, 2026 at 6:03:32 AM
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Quote: acesideWhy do we worry about IRS? Most gamblers have a negative win from gambling income. Occasionally, I saw somebody winning more than a million dollars a jackpot, but they often tipped out thousands to the dealer.
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We worry because we are not 'most gamblers' and many of us work hard not to be 'most gamblers'.
I am average net win over the last five years is $700K and I am having a better than average year in 2026. A strict definition of 'session' could cost me $100K-$200K in extra taxes. I am hoping the FULLHOUSE act passes in time to save my bacon. My plan B is to use a very liberal definition of session.
S.2230 - Facilitating Useful Loss Limitations to Help Our Unique Service Economy (FULL HOUSE) Act
https://www.congress.gov/bill/119th-congress/senate-bill/2230
Gambling is a math contest where the score is tracked in dollars. Try not to get a negative score.
October 12th, 2026 at 8:07:39 AM
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If I managed to have a net win of $200K at table games/bubble craps with no W-2G's, I could play enough slots at $100/spin in a December to accrue approximately $200K in W-2G's and file as a winner just on W-2G's.
