Senate Bill S7876

2025-2026 Legislative Session

Relates to the itemized deduction for gambling losses

download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Finance Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2025-S7876 (ACTIVE) - Details

Current Committee:
Senate Finance
Law Section:
Tax Law
Laws Affected:
Amd §615, Tax L

2025-S7876 (ACTIVE) - Summary

Provides that the New York itemized deduction for gambling losses shall be zero percent of the amount allowed under the internal revenue code.

2025-S7876 (ACTIVE) - Sponsor Memo

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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Adam_Cohen_1
2 weeks ago

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.

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