The WAGER Act would modify tax rules for people who gamble by restoring limitations on how much gambling losses can be deducted from gambling winnings. Specifically, the bill amends the tax code to clarify that wagering losses can only offset wagering gains, preventing gamblers from using losses to reduce other types of income. This change would affect individual taxpayers who gamble and report gambling income, potentially increasing their tax liability if they cannot deduct losses beyond their winnings. The bill has no specified funding requirements since it modifies tax deductions rather than creating spending programs. The change would take effect for tax years beginning after December 31, 2025, meaning it would first apply to the 2026 tax year.
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