The Kentucky Senate Appropriations and Revenue Committee approved House Bill 354 which would allow gambling losses to be deducted from gambling winnings reported as taxable income. The measure addresses “unintended circumstances” from last year’s tax overhaul bill that included taxing gross gambling winnings.
Committee Chairman state Senator Chris McDaniel said prior to the 2018 tax measure, “we had taxed gambling earnings on the net. Then last year we taxed on the gross. This change would take it back to the net. The way it was before.” McDaniel said the change would cost the state about $3.2 million. It will not apply to 2018 tax returns.
McDaniel said the tax bill will now go to the full Senate for its consideration.
