TaxVigDo I owe tax if I broke even betting?
Often, yes. Starting with tax year 2026, you can deduct only 90% of your gambling losses, and never more than your winnings (26 U.S.C. 165(d)). So even a year where you broke even leaves some winnings taxed.
Example: you win $50,000 and lose $50,000 in 2026. You can deduct $45,000, so $5,000 of winnings is taxed even though you kept nothing.
There is a second catch. You can deduct gambling losses only if you itemize on Schedule A (IRS Topic 419). If you take the standard deduction, your losses reduce nothing and all of your winnings are taxed.
How big your winnings and losses are also depends on how you count them: by session or bet by bet. See our page on the session method.
A calculator, not tax advice. Show this to your CPA. Compare both counting methods with your own totals.