Gambling Addiction and the Tax Cuts and Jobs Act of 2017

gambling

Admitting to your gambling addiction isn’t always easy. It might make you feel ashamed or embarrassed, but you’re not alone. Many people have faced gambling addiction, and found ways to stop it. You can get professional help, and even take a quiz to match yourself with a therapist. Fortunately, betterHelp is reader-supported. If you click on a BetterHelp link, we might earn a small commission.

Legalization of gambling

Gambling is a form of recreation that is increasingly becoming legal. As more states are realizing, legalized gambling can help provide a powerful economic stimulus. It can provide a state with tax revenues that can be spent on various projects. Besides bringing a monetary boost to the economy, legalized gambling is a great way to boost the tax base of a state.

The history of gambling provides a compelling argument for legalizing gambling. The decline of organized crime and the development of economies in states that have legalized gambling has been shown to be a direct result of legalization.

Impact of gambling on tax returns

The Tax Cuts and Jobs Act of 2017 (TCJA) halted a decade-long legal precedent allowing professional gamblers to deduct net losses from their gambling activities. The TCJA amended Sec. 165 to reverse a 2011 Tax Court ruling and a 2008 IRS memo. This change is momentous for taxpayers who claim gambling as a trade or business.

Professional gamblers and amateurs alike should consult with a tax advisor to ensure they are making the best possible tax decisions. A tax professional can examine your entire tax situation and provide advice for your unique situation. Though you can claim losses from your gambling activities, you are only allowed to deduct losses up to the amount of your winnings. As a result, it is critical to keep a gambling diary to document your activity.

Treatment for gambling addiction

Gambling addiction can be a serious condition that affects a person’s life in many different ways. Some individuals are attracted to the thrill of winning big, while others may gamble to escape emotional turmoil or to cope with stressful situations. However, regardless of the cause of an individual’s gambling habit, it is possible to recover from a gambling addiction. In many cases, talking to a financial counselor can help a person to understand how their gambling habits may affect their finances.

A gambling addiction treatment plan usually involves counseling sessions and medication. The treatment program can also include group therapy and self-help programs. The most common form of treatment for gambling addiction is cognitive behavioral therapy, which focuses on recognizing the irrational beliefs that cause the gambler’s urges.

Costs of gambling

The costs of gambling are many and varied. Some forms of gambling result in more social costs than others. There are many reasons why people choose to gamble, and economists have different approaches. But the overall cost is the same: problem gambling can lead to negative impacts on society and the economy. This paper describes a study that found that problem gambling causes a 12% decrease in workplace productivity.

These costs are a combination of direct and indirect costs. They include financial, emotional, and social costs. In Sweden, the societal costs of problem gambling were estimated to be EUR1419 million in 2018. Direct costs represented 13% of the total, while indirect costs amounted to 832 million euros, or 59%. Intangible costs, such as relationships and depression, are difficult to quantify.