Bill > S07876

This bill proposes to modify New York state tax law by eliminating the itemized tax deduction for gambling losses, effectively setting the deduction to zero percent of the amount previously allowed under the federal Internal Revenue Code (specifically §165(d)). Currently, taxpayers can typically deduct gambling losses up to the amount of their gambling winnings when filing their taxes, but this bill would remove that deduction for New York state tax returns. The change would apply to all taxable years beginning on or after January 1, 2025, meaning taxpayers would no longer be able to use gambling losses to offset their taxable income for New York state tax purposes starting in the 2025 tax year. This modification could potentially increase tax liability for individuals who have significant gambling losses and previously used these losses to reduce their state tax burden.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S7876