2025 One Big Beautiful Bill Act - New Limit for Claiming Gambling Losses

The One Big Beautiful Bill Act, enacted on July 4, 2025 as Public Law 119-21, introduced a wide range of changes that will impact tax returns for the 2025 tax year and beyond.

Beginning in tax year 2026, only 90% of gambling losses will be deductible. Additionally, professional gamblers are limited to 90% of their gambling losses and business expenses (such as travel, lodging, and tournament fees) up to the amount of their winnings. Thus, the professional gambler may still owe taxes by breaking even or losing money.

Tax Processors Plus strives to make the information on this page timely and accurate but makes no promise or guarantee about the timeliness, accuracy, or completeness of the contents of this page. This is general information and is not intended to be tax advice. You are encouraged to also review the underlying federal resources and publications.