Short answer: yes. All gambling winnings are taxable federal income, even if you never receive a W-2G, and starting with the 2026 tax year you can only deduct 90% of your losses.
What changed for 2026 (One Big Beautiful Bill Act) - 90% loss cap: For tax years beginning after December 31, 2025, you can deduct only 90% of gambling losses, and never more than your winnings. If you win $10,000 and lose $10,000, you could still owe tax on $1,000. - Higher W-2G thresholds: Under IRS proposed rules, the reporting threshold for slots, bingo and keno rose to $2,000. For most other wagers, including many sports bets, a W-2G is triggered at $2,000 and at least 300 times your stake. The $2,000 figure will be indexed for inflation after 2026.
What hasn't changed 1. You must report all winnings, W-2G or not. 2. You can only deduct losses if you itemize on Schedule A. If you take the standard deduction, you get no loss deduction. 3. Keep records: download each sportsbook's annual win/loss statement and keep bank records.
State taxes are separate Most states tax winnings too, and rules on losses vary. North Carolina just started allowing a state loss deduction (see that thread).
This isn't tax advice. The IRS rules are still proposed, so check with a tax pro before you file.
How are you planning for the 90% rule? Are you tracking every bet, or just relying on your sportsbook's year-end statement?
What changed for 2026 (One Big Beautiful Bill Act) - 90% loss cap: For tax years beginning after December 31, 2025, you can deduct only 90% of gambling losses, and never more than your winnings. If you win $10,000 and lose $10,000, you could still owe tax on $1,000. - Higher W-2G thresholds: Under IRS proposed rules, the reporting threshold for slots, bingo and keno rose to $2,000. For most other wagers, including many sports bets, a W-2G is triggered at $2,000 and at least 300 times your stake. The $2,000 figure will be indexed for inflation after 2026.
What hasn't changed 1. You must report all winnings, W-2G or not. 2. You can only deduct losses if you itemize on Schedule A. If you take the standard deduction, you get no loss deduction. 3. Keep records: download each sportsbook's annual win/loss statement and keep bank records.
State taxes are separate Most states tax winnings too, and rules on losses vary. North Carolina just started allowing a state loss deduction (see that thread).
This isn't tax advice. The IRS rules are still proposed, so check with a tax pro before you file.
How are you planning for the 90% rule? Are you tracking every bet, or just relying on your sportsbook's year-end statement?