We Do Books™ Blog

If you’ve gotten used to reporting gambling winnings and then “washing them out” with gambling losses on your tax return, 2026 is where that muscle memory can betray you. A federal law change effective for tax years beginning after December 31, 2025 rewrote the wagering-loss rule in IRC §165(d) so the deductible amount is now generally 90% of your wagering losses, and it’s still capped at your wagering gains (winnings). Translation: even a break-even gambling year can create taxable “phantom income” that you’re not accustomed to seeing.

Every year taxpayers are hit with tax surprises that could be avoided if they just knew the rules.

Here are five big ones that are easy to avoid with some simple planning.

For some reason, some believe it's better to receive than to give when it comes to filing taxes.

While that may help your savings account, it's not always a great idea. Here's why:

Each year the IRS publishes the top dozen tax scams it encounters over the prior year. One of them that makes an all too common appearance on their list is the phishing scam.

Here is what you need to know.