If you gamble, you may not feel like as much of a winner come tax season next year. Changes in the State of Oklahoma tax law a limiting how much you can write off as a 'loss.'

'I see this for Oklahoman's as like the gambling penalty,' said Eileen Robinson, the head accountant at Gardner's Tax Services Inc.

1. Posted April 2019 Oklahoma HB 2667 was passed in the House on March 7 by a vote of 83-16 and is currently in the Senate awaiting action. If passed, gambling losses would be exempt from the Oklahoma itemized deduction limitation ($17,000) in the same manner as medical expenses and charitable contributions. Essentially, gambling losses would return to being deductible to the extent of winnings.
2. 'For federal you have to show in the income on the 1040, your schedule 'A' is where you take your itemized deductions and that's where you right off your gambling losses,' Robinson said.

Gambling Losses. If you suffered gambling losses in 2019, you can deduct up to the amount of gambling income that you reported. You can claim your losses as an “other miscellaneous deduction,” but be prepared to show proof of those losses. Paying a Professional Helps: How One Mistake on My Taxes Almost Resulted In Fraud. Use Form 1099G to report your gambling losses on your federal income tax return. The IRS mails this form no later than Jan. It shows the total amount of your gambling winnings, which you must claim on Form 1040, line 21. While you can deduct gambling losses, these deductions cannot exceed the amount of your total winnings. For example, if you win $1,000 playing the lotto, but you’ve purchased $2,000 worth of losing tickets, you can write off the losing tickets only up to the amount of your $1,000 winnings, and not the entire $2,000 you lost playing.

In previous years, you could write off your total gambling losses in your adjusted income which is what you can still do for federal taxes, but for Oklahoma state taxes, you can't do that anymore.

'For federal you have to show in the income on the 1040, your schedule 'A' is where you take your itemized deductions and that's where you right off your gambling losses,' Robinson said. 'In Oklahoma, they limited the amount of itemized deductions you can take, you can take all of your donations but it limits the rest of it to that 17,000.'

This means you'll have to pay income tax for the total amount of big jackpots.

In the past, if you lost money while gambling, then won, you could deduct those losses from your winnings then only pay the tax on the difference.

'Now when you win that money you're going to have to pay the taxes whether you out that money back into the machine or not,' Robinson said.

Something that Robinson says has been an unpleasant surprise for her clients this year.

'They're in shock, most of them didn't know and of course not until we got ready to do their taxes,' Robinson explains.

It may be too late to make the adjustment this year, but there are ways to prepare for the tax change next season.

'I'd say 5% of all their winnings needs to be set aside to send in' Robinson said. 'So lets say if you won something you need to make sure you set back enough to be able to pay the taxes for the state and try not to plug that into the machine.'

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With all the changes in the new tax law, you may not know what expenses you’re still allowed to deduct. Fortunately, we have you covered. Here is a list of tax deductions you may have thought got the axe but are still available for your 2018 tax return.

Medical Expenses

The medical expense tax deduction is still available and will increase to 10 percent of your adjusted gross income. Qualifying medical expenses include doctor bills, prescriptions, insurance premiums under certain circumstances, newborn expenses, related travel expenses and more. You can even deduct the cost of service animals including purchase, training, feeding, grooming and veterinary care.

Gambling Losses

Gambling losses can still be included as miscellaneous tax deductions, but the definition of gambling losses has been broadened to include other expenses related to gambling activities, such as travel to and from a casino or track. You can only deduct losses up to the amount of your winnings, so any excess loss can’t offset other highly taxed income.

According to the IRS, taxpayers must compile the following in a log or other record:

• The date and type of each wager or wagering activity.
• The name and location of the gambling establishment.
• The names of any other person accompanying you to the gambling establishment.
• The amount you won or lost.

Alimony and Legal Fees

Alimony payments made under divorce or separation instruments that are executed after December 31, 2018 will no longer be deductible, and recipients of affected alimony payments will no longer have to include them in taxable income. But if your divorce was executed before the cut off, alimony is still deductible. Divorce-related legal fees may also be deductible by the party seeking alimony if the legal fees are incurred while disputing alimony rights.

Home Office Deduction

You may still be able to deduct some expenses for the business use of your home if there is a part of it that you use regularly and exclusively for work. To qualify, your home must also be your principal place of business, so even daycare providers and certain other businesses may take this deduction.

Health Savings Account Contributions

A Health Savings Account (HSA) is funded with pre-tax money, so it can still create tax deductions plus potential retirement savings. That money can be used tax-free for qualifying healthcare expenses, such as doctor visits, dental work, eyeglasses and more. HSA contribution limits will rise to $3,500 for individuals and $7,000 for families, and those 55 or older can contribute an additional $1,000. You’ll still need to have a qualifying high-deductible health insurance plan to contribute to an HSA, and you generally must not have any other health coverage.

No matter how the new tax laws affect your tax situation, ezTaxReturn can help you maximize your deductions and receive the biggest tax refund possible. The whole process is quick and easy as we ask about life events and other relevant information to help you take advantage of every credit and deduction the law allows.

Writing Off Gambling Losses 2019 Memes

Writing Off Gambling Losses 2019 Season