Congress·In Committee·H.R. 4304

Fair Accounting for Income Realized from Betting Earnings Taxation Act

Gambling Tax: Full Deduction for Betting Losses

about 2 months ago·View on Congress.gov·Read full text

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Key Points

This bill, introduced by Congress, changes how the IRS handles taxes for people who gamble. It focuses on how much of your gambling losses you can use to lower your tax bill.
Currently, the law referenced in this bill limits taxpayers to deducting only 90% of their gambling losses against their winnings. This bill would raise that limit to 100%, allowing people to fully cancel out their winnings with an equal amount of losses.
This change is important for both casual and professional bettors because it ensures they only pay taxes on their actual net profits. Without this, someone who breaks even over the course of a year might still owe taxes on a portion of their winnings.
The policy aims to make the tax code fairer for those who participate in legal betting, such as sports wagering or casino games, by recognizing the full cost of their losses when calculating what they owe the government.

Impact Analysis

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Milestones

2 milestones3 actions

Feb 12, 2026House

Motion to Discharge Committee filed by Ms. Titus. Petition No: 119-16. (<a href="https://clerk.house.gov/DischargePetition/2026021216">Discharge petition</a> text with signatures.)

Jul 7, 2025House

Referred to the House Committee on Ways and Means.

Jul 7, 2025

Introduced in House

The bill was officially filed and given a number. It now enters the legislative queue.

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Source Information

Document Type

Congressional Bill

Official Title

Fair Accounting for Income Realized from Betting Earnings Taxation Act

Bill NumberHR 4304

Congress119th Congress

ChamberHouse of Representatives

Latest ActionMotion to Discharge Committee filed by Ms. Titus. Petition No: 119-16. (<a href="https://clerk.house.gov/DischargePetition/2026021216">Discharge petition</a> text with signatures.)