Ohio Adds Gambling Loss Deduction…In 2013

The Ohio legislature recently passed HB 519. The measure creates the Ohio Casino Commission to run Ohio’s soon-to-exist casinos. There’s a bit of good news for Ohioans buried in the measure. Beginning with tax year 2013, Ohio residents will be able to deduct gambling losses up to the amount of their winnings. Professional gamblers today can already take their gambling losses (they are allowed to net their wins and losses on Schedule C); this measure will allow amateur gamblers to take the losses.

Note that this deduction will be available only if you itemize your deductions, and only to the extent that federal law allows gambling losses to be deducted. I mention this because some Democratic Congresscritters are discussing eliminating all itemized deductions…which would be disastrous for amateur gamblers.

The legislation also notes an obvious fiscal reality: “[The Act] [a]llocates to Ohio all casino gaming winnings paid by any person licensed by the Ohio Casino Control Commission so that winners pay Ohio income taxes on such winnings.” Expect non-residents of Ohio who win significant amounts in Ohio casinos to receive W-2Gs so that Ohio can make sure that they receive their fair share of the tax revenues.

Do note that Ohio has city income taxes. Each city would need to adopt a similar measure for gambling losses to be deductible on city income taxes. Given current budgetary shortfalls, that’s unlikely to occur in the near future.

2 Responses to “Ohio Adds Gambling Loss Deduction…In 2013”

  1. Jack Pawlowski says:

    I don’t understand why it not on effect for 2012