Where you live decides whether a break-even year costs you nothing or costs you thousands. Three sets of rules cover all fifty-one — find your state's group, open your state, and run the numbers at your rate.
The One Big Beautiful Bill Act (P.L. 119-21) limits the federal gambling loss deduction to 90% of losses, still capped at winnings, beginning in tax year 2026. Excess losses do not carry forward.
States that compute from federal itemized deductions or federal taxable income with rolling conformity may inherit the 90% cap for tax year 2026; states that decouple, or that net wager costs on their own schedule, may not. TaxBet states a state's treatment only once it is confirmed against that state's department of revenue, and marks the rest pending.
A gambler who wins $100,000 and loses $100,000 now owes federal tax on $10,000 they never kept — in every state, including the ones with no income tax.
Every state calculation above begins with the winnings number the session method computes. Upload your operator history and see the shape of your year free.
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