| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| May 28, 2025 |
reported and committed to finance |
| May 13, 2025 |
referred to budget and revenue |
Senate Bill S7876
2025-2026 Legislative Session
Sponsored By
(D) 26th Senate District
Current Bill Status - In Senate Committee Finance Committee
Actions
Votes
2025-S7876 (ACTIVE) - Details
- Current Committee:
- Senate Finance
- Law Section:
- Tax Law
- Laws Affected:
- Amd §615, Tax L
2025-S7876 (ACTIVE) - Sponsor Memo
BILL NUMBER: S7876
SPONSOR: GOUNARDES
TITLE OF BILL:
An act to amend the tax law, in relation to the itemized deduction for
gambling losses
PURPOSE OR GENERAL IDEA OF BILL:
This bill would eliminate the ability for New York State Personal Income
Tax Fillers to take the itemized deduction for gambling losses
SUMMARY OF PROVISIONS:
Section One of this bill adds a new subsection (h) by amending Section
615 of the tax law to eliminate the deduction of gambling losses for
fillers of personal income tax
Section Two provides for an effective date
2025-S7876 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
7876
2025-2026 Regular Sessions
I N S E N A T E
May 13, 2025
___________
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to the itemized deduction for
gambling losses
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 615 of the tax law is amended by adding a new
subsection (h) to read as follows:
(H) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, THE NEW YORK ITEM-
IZED DEDUCTION FOR GAMBLING LOSSES SHALL BE ZERO PERCENT OF THE AMOUNT
ALLOWED UNDER §165(D) OF PART VI OF SUBCHAPTER B OF CHAPTER 1 OF SUBTI-
TLE A OF THE INTERNAL REVENUE CODE.
§ 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2025.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10997-02-5
Comments
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I just listened to the standing committee meeting on Budget and Revenue where this bill was discussed. There was a lot of misinformation being shared. The TCJA did not change the federal law for allowing the deduction of gambling losses. You are still allowed to deduct your gaming losses to the extent that you have gambling wins. This bill would deviate from the federal law significantly. For simplicity purposes, if you placed $100,000 in bets during the year, and won $40,000 of them and lost $60,000 of them, you would have lost $20,000 during the year. Under the federal law and current New York State law, you would include $40,000 of income and only be allowed to deduct $40,000 of losses so you aren’t getting a benefit for the money that you lost. However, under this new bill, you would need to include $40,000 of income on your tax return and would not be able to deduct any losses. Therefore, even though you lost money over the year, you would owe a significant tax liability which would not make sense. It didn’t seem the committee fully understood this. This would cause many people to owe tax on money they did not earn and do not have and cause a lot of issues.