What if you can’t deduct your losses?

There’s talk about changing tax rules. I get about 20+ W-2Gs each year anywhere from $1,200 to $15K hits. I rarely have a winning year. The win totals usually mess up some of my other deductions like medical and Medicare insurance because they're on page 1. Luckily now I can still offset my winnings. However, what happens if they don’t allow the deduction, I’m not sure what I’ll do. I play almost all VP now. Maybe I’ll play more table games. What would you do?

 

Why wouldn't they allow the deduction? You said you have net losses right?

Just add up all of your W-2gs and put them on page 1, and put an equal deduction on your schedule A itemized deductions.

You are right that it could mess up other desucruons slightly. And if you live in a state with income tax then the deduction of losses don't help on the state returns.

 

I think the OP means what happens if they stop allowing losses to offset winnings, but I haven't seen or heard any talk of that. I did read there was talk of making the W2G threshold $500 instead of the current $1,200.

 

Staying away from politics. There is talk about doing away with various other deductions and changing the future tax structure overall. It has nothing to do with what's in place now or any specific talk. It's doubtful, but anything can happen.

 

Gotcha - so if we're talking about potential changes, then really anything can happen.

 

We could either win or lose with future federal tax laws.

 

Exactly. I find it is not worth even spending 1 minute on issues like this.

- it takes ages to get laws changed
- it then usually takes some time before it is enacted
- when it does happen ( I doubt it will) - then I will decide what to do - which would be what I have already started doing - playing lower limit machines and less playing.

Yes, it sucks - it even impacts ACA since that income goes on the first page and as a result, we do not get assistance. Same as medicare.