Gambling Deductions New Tax Bill

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The bill would cut $5.9 trillion in taxes over 10 years, including a reduction in the corporate tax rate, a larger standard deduction and cuts to individual income taxes.

Gambling Deductions New Tax Bill Details

Apr 15, 2018  With the tax code changes, will casual gamblers that do not itemize deductions be able to offset winnings with gambling losses? Hope so, or I will have to avoid W-2Gs at all cost. Given the recent passage of the tax reform bill, could you please provide some insight on how this will impact the recreational gambler? The new tax plan being discussed in the US legislature contains some language that effects gamblers. If passed the following change will be phased in. With the increase in the standard deduction it also brings into effect whether certain gamblers will opt to pay tax on winning or still continue to deduct losses.

To help pay for these changes, it would raise $4.5 trillion in part by cutting numerous deductions for individuals and repealing the personal exemption.
The plan would not completely pay for itself; it would add more than $1.4 trillion to the federal debt over 10 years. (Republicans signed off on a $1.5 trillion increase in their latest budget.)
To individual taxes, the bill would make $4.1 trillion in cuts and include $3.1 trillion in new tax increases.
The bill calls for a major cut to individual tax rates ..
.. a standard deduction roughly double its current size ..
.. and a repeal of the alternative minimum tax, which primarily affects households with incomes from $200,000 to $1 million.
The bill also includes an increase in the child tax credit to $1,600 from $1,000 and a new, temporary, $300 family credit ..
.. a large tax cut for some “pass-through” income of individual business owners ..
.. and a repeal of the estate tax in five years (the size of estate that the tax currently affects would be increased in the meantime).
To help pay for these cuts, the bill would repeal the personal exemption, a deduction currently worth $4,050 for each filer and for each dependent.
Additional money is raised by eliminating several deductions, including ones for state and local income taxes and for medical expenses, and limiting the deductions for mortgage interest and property taxes.
The bill uses a less generous measure of inflation that would tax more individual income and devalue certain tax credits over the long run.
It would repeal several other tax credits and exclusions and newly require a work-eligible Social Security number to claim certain credits. It also would make changes to retirement plan rules.
The bill would also repeal several education-related tax breaks, including for interest on student loans.

Oklahoma Gambling Deduction

Gambling deductions new tax bill passed today
In addition to the changes for households, the bill would make several major changes to business taxes, including $1.8 trillion in cuts and $1.3 trillion in new tax increases.
Gambling Deductions New Tax Bill
The most expensive change in the bill is a reduction of the corporate tax rate to 20 percent from a top rate of 35 percent.
Other tax cuts include changes to small business expensing and accounting methods and the repeal of the alternative minimum tax for businesses.
Full and immediate expensing for qualified investments would cost $25 billion to include. Other cuts come from changes to rules for certain foreign income, tax-exempt organizations and excise taxes on Puerto Rican rum.
To help pay for the rate cut, the bill includes changes to more than a dozen corporate exclusions and deductions, including scaling back deductions for net interest and eliminating the deduction for domestic production.
The establishment of a new territorial tax system, which would only tax income earned domestically to the U.S. corporate tax rate, is estimated to pay for itself over the first 10 years, because it would be paired with a one-time repatriation of foreign earnings.

New Tax Bill Brackets

The bill includes new rules to prevent companies from avoiding U.S. taxes and implements a new excise tax on certain foreign payments.
It would make changes to business tax credits, including repealing those for testing certain drugs for rare diseases. Several tax-exempt bonds would also be terminated, including one for professional stadiums.

Gambling Deductions New Tax Bill Passed Today

Other tax increases would come from changes to rules for insurance companies and the elimination of tax benefits for certain highly compensated employees.
In total, the new revenue in the bill is not enough to pay for all of the tax cuts. Republicans could solve this by eliminating some large tax breaks that remain, but many are incredibly popular. Under current law, the government is projected to spend trillions on these breaks over the next 10 years, including:

New Tax Laws On Deductions

  • $3 trillion for the exclusion for employer contributions for health insurance
  • $1.2 trillion for reduced tax rates for capital gains
  • $778 billion for the earned income tax credit