Ok so which is it? Take 90% of LOSSES? Or offset 90% of WINS? Posted on July 12, 2025 at 10:20:48 PM by Bennett
There is a difference, and as usual the “professional journalists” reporting on this don’t seem to know what they are talking about. Just like every other topic.
Some are saying that gamblers can “only deduct 90% of losses”….which could go like this:
A gambler has $100k of reportable gambling wins for the year. But they spent $150k to get those. They are down $50k for the year. No profit. They can deduct 90% of the losses. That’s $135k. Well that is more than the $100k in reportable wins. So they STILL report $100k in wins and $100k in allowable losses. Their taxable gambling win goes to zero. No taxes due.
BUT: if they can only offset 90% of wins, that looks like this:
Report $100k of wins. If the losses are $100k or $150k or any number above $90k….it doesn’t matter. All they can do is offset 90% of the $100k wins. So they report $100k wins and the max that goes as the deduction for losses is $90k. Taxable gambling income is now $10k. They owe federal tax on $10k. At their marginal tax bracket. So say $1500 to $3700 in federal taxes. In a losing year.
So which is it? Deduct only 90% of losses or only offset 90% of wins? The difference is BIG! Replies:
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