Bill > HR4630

This bill, known as the Winnings And Gains Expense Restoration Act of 2025 (WAGER Act), proposes a change to the Internal Revenue Code regarding the tax treatment of wagering losses. Specifically, the bill seeks to restore previous rules limiting the deductibility of gambling losses by amending Section 165(d)(1) of the tax code. Under the proposed amendment, the language restricting the deduction of wagering losses will be removed, effectively allowing taxpayers to claim these losses more broadly than under a previous recent amendment. The change would take effect for taxable years beginning after December 31, 2025, which means taxpayers would be able to apply this more generous loss deduction rule starting with their 2026 tax returns. By restoring earlier loss limitation rules, the bill aims to provide more favorable tax treatment for individuals who incur losses from gambling activities, potentially offering some financial relief to those who experience significant gambling-related expenses.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/4630/all-info