Federal tax guides confirm that gambling losses cannot offset gambling winnings for most US taxpayers. Despite a tax-law revision for 2026, anyone taking the standard deduction cannot claim gambling losses at all, and the losses do not either reduce taxable winnings or treat any gambling gain as taxable only to the net of winnings and losses.
The requirement to itemize deductions to claim gambling losses is unchanged. Tax guides confirm that the federal rules still require a Schedule A itemization to claim an itemized deduction for any gambling losses at all this tax year.
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21+ only. Gambling should stay entertainment — never a way to make money. If it stops being fun, call 1-800-GAMBLER. State law decides what is available where you live; check your own rules before you deposit.
The requirement is not rewritten in this tax year's definitions of gambling losses, gambling winnings, and procedure for allowable deduction. Filers who win but lose more will still have to report the gains and lose any offset to taxable income. All winnings remain taxable in full for most taxpayers.
Even with the 2026 change, the limitation rules mean most gamblers report income and have no allowable deduction. The loss deduction cannot exceed gambling income.
Some gamblers try to account for winnings and losses session by session. This is called "session" accounting. By treating a favorable session as one that cancels out a prior losing session, some gamblers try to stay within the 90% limit.
But the IRS expects gamblers to treat outlier winnings as separate from daily draws, tournaments, and losses. A large jackpot from one session cannot be canceled out against losses from another session, for example. Slot machine winnings should go with the casino's report, and no previous sessions would figure into major-payout sessions. Bingo winnings and 4th of July raffle earnings would stay separate still, even if billed as one winning gaming season if the regulations are followed.
Before this tax season change, tax guides explain the arithmetic used by the IRS: gambling losses reduce taxable income only if a loss is in excess of the gambling winnings and gambling losses offset only up to the amount of gambling income. In the arithmetic, taxpayers should take in full whatever gambling income is recognized, and then claim a separate deduction for wagers or losses subject to the limitations on deductions.
Itemizers can deduct gambling losses up to the amount of winnings. But they still do not get an offset at all with the standard deduction. TurboTax’s guide to deducting gambling winnings and losses states explicitly that a casual gambler has no deductions with a standard deduction choice.
Tax-wise, at the end of tax season, casinos and tracks will report your winnings, and you will either have a separate deduction or none at all based on your filing choice. The streamlined IRS answer remains the same even after the 2026 odds-and-line amendments. Those gambling losses can be deducted only if gambling winnings are itemized and included in your adjusted gross income on your Schedule A form.