President Donald Trump has revealed that he will consider getting rid of taxes on gambling winnings. The 79-year-old already promoted eliminating taxes on tips, Social Security, and overtime this year.
Chief White House Correspondent Brian Glenn asked the gambling-related question on Air Force One, to which Trump replied that nobody had asked him that in a long time before saying: “I don’t know. I’m gonna have to think about that.”
For payouts of at least $5,000, a 24% federal withholding tax rate applies.
Under the current rules, anyone who wins more than $600 will typically need to complete a W-2G form. For payouts of at least $5,000, a 24% federal withholding tax rate applies. Some states add their own taxes on top of the 24%. New Jersey’s rate, for example, is 3%, while California and Nevada don’t charge any tax on winnings.
One issue that took gamblers aback this year was the administration’s plan to reduce the deductible gambling losses from 100% to 90% as part of the “One Big Beautiful Bill Act.” This effectively meant that people could still have to pay taxes on some of their winnings, even if they didn’t make a profit over the course of the year.
The legislation came into effect over the summer. Congresswoman Dina Titus is leading the charge to repeal this new rule through the FAIR BET Act.
