{"id":505,"date":"2026-01-16T18:14:01","date_gmt":"2026-01-16T18:14:01","guid":{"rendered":"https:\/\/blog.suryapadhiea.com\/blog\/?p=505"},"modified":"2026-01-16T18:29:06","modified_gmt":"2026-01-16T18:29:06","slug":"betting-on-the-2026-tax-season-how-the-new-90-gambling-loss-rule-impacts-you","status":"publish","type":"post","link":"https:\/\/blog.suryapadhiea.com\/blog\/tax-tips\/betting-on-the-2026-tax-season-how-the-new-90-gambling-loss-rule-impacts-you\/","title":{"rendered":"Betting on the 2026 Tax Season: How the New 90% Gambling Loss Rule Impacts You"},"content":{"rendered":"\n<p>Losing a job or transitioning to self-employment is stressful enough without the &#8220;sticker shock&#8221; of COBRA premiums. Because you are now paying 100% of the premium (plus a 2% administrative fee), these costs can quickly become one of your largest annual expenses.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"1024\" src=\"https:\/\/blog.suryapadhiea.com\/blog\/wp-content\/uploads\/2026\/01\/image-1.png\" alt=\"The Complete Guide to Gambling Taxes in 2026: Navigating the 90% Rule and New Regulations\" class=\"wp-image-507\" srcset=\"https:\/\/blog.suryapadhiea.com\/blog\/wp-content\/uploads\/2026\/01\/image-1.png 1024w, https:\/\/blog.suryapadhiea.com\/blog\/wp-content\/uploads\/2026\/01\/image-1-300x300.png 300w, https:\/\/blog.suryapadhiea.com\/blog\/wp-content\/uploads\/2026\/01\/image-1-150x150.png 150w, https:\/\/blog.suryapadhiea.com\/blog\/wp-content\/uploads\/2026\/01\/image-1-768x768.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The good news? The IRS generally views COBRA premiums as a <strong>qualified medical expense.<\/strong> The bad news? Whether or not you actually get a tax break depends entirely on how you file.<\/p>\n\n\n\n<p>Here is everything you need to know about claiming COBRA on your 2025 or 2026 tax return.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"1.-The-Standard-Path:-Itemizing-on-Schedule-A\">1. The Standard Path: Itemizing on Schedule A<\/h2>\n\n\n\n<p>For most taxpayers (W-2 employees or those currently unemployed), COBRA is claimed as an itemized medical deduction. However, there are two high hurdles you must clear to see a benefit:<\/p>\n\n\n\n<ul>\n<li><strong>The 7.5% Threshold:<\/strong> You can only deduct the portion of your total medical expenses that exceeds <strong>7.5% of your Adjusted Gross Income (AGI)<\/strong>.<\/li>\n\n\n\n<li><strong>The Standard Deduction Hurdle:<\/strong> Since you have to itemize to claim medical expenses, your total deductions (including COBRA, mortgage interest, and state taxes) must be higher than the standard deduction for your filing status.<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p><strong>Example:<\/strong> If your AGI is $60,000, the first $4,500 of medical expenses don\u2019t count. If your COBRA premiums totaled $6,000, you could potentially deduct $1,500\u2014but only if you choose to itemize.<\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"2.-The-&quot;Fast-Track&quot;:-For-the-Self-Employed\">2. The &#8220;Fast Track&#8221;: For the Self-Employed<\/h2>\n\n\n\n<p>If you\u2019ve left your job to start a business or work as a freelancer, you have a much better tax advantage. You may be eligible for the <strong>Self-Employed Health Insurance Deduction.<\/strong><\/p>\n\n\n\n<ul>\n<li><strong>Why it\u2019s better:<\/strong> This is an &#8220;above-the-line&#8221; deduction. You don&#8217;t need to itemize to claim it, and it isn&#8217;t subject to the 7.5% AGI floor.<\/li>\n\n\n\n<li><strong>The Rules:<\/strong> You can deduct 100% of your premiums, provided you have a net profit from your business.<\/li>\n\n\n\n<li><strong>The Restriction:<\/strong> You cannot claim this deduction for any month you were eligible to participate in a subsidized health plan through a spouse&#8217;s employer.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"3.-Necessary-Forms-and-Paperwork\">3. Necessary Forms and Paperwork<\/h2>\n\n\n\n<p>When tax season arrives, ensure you have the following ready for your CPA or tax software:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Filing Situation<\/strong><\/td><td><strong>Tax Form Needed<\/strong><\/td><td><strong>Where it Goes<\/strong><\/td><\/tr><tr><td><strong>Standard\/Unemployed<\/strong><\/td><td><strong>Schedule A<\/strong><\/td><td>Line 1 (Medical &amp; Dental)<\/td><\/tr><tr><td><strong>Self-Employed<\/strong><\/td><td><strong>Form 7206<\/strong><\/td><td><strong>Schedule 1<\/strong>, Line 17<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Pro-Tips-for-Maximizing-Your-Claim\">Pro-Tips for Maximizing Your Claim<\/h2>\n\n\n\n<ul>\n<li><strong>Don&#8217;t forget Dental and Vision:<\/strong> If you elected COBRA for dental or vision, those premiums are also deductible.<\/li>\n\n\n\n<li><strong>Include your Family:<\/strong> You can claim premiums paid for your spouse and dependents, as well as children under age 27, even if they aren&#8217;t your tax dependents.<\/li>\n\n\n\n<li><strong>Keep a Paper Trail:<\/strong> The IRS does not receive a &#8220;Form 1095&#8221; for COBRA like they do for Marketplace plans. Keep your enrollment letters and bank statements as proof of payment.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Summary\">Summary<\/h2>\n\n\n\n<p>If you are self-employed, COBRA is a powerful deduction that lowers your taxable income dollar-for-dollar. If you are an employee or unemployed, it\u2019s a helpful addition to your itemized list\u2014but only if your total medical costs are significant.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"HOW-SURE-FINANCIAL-AND-TAX-SERVICE-LLC-HELPS?\"><strong>HOW SURE FINANCIAL AND TAX SERVICE LLC HELPS?<\/strong><\/h2>\n\n\n\n<p>For assistance in navigating your taxation and foreign financial need and ensuring compliance, consult <strong>SURE FINANCIAL AND TAX SERVICES LLC( dba SURYA PADHI, EA)<\/strong>. <a href=\"https:\/\/suryapadhiea.com\/\"><u>SURE FINANCIAL AND TAX SERVICES LLC <\/u><\/a>have the expertise to guide individuals and businesses through the complexities of tax forms, ensuring accurate completion and adherence to IRS requirements. By partnering with us, individuals and businesses can confidently manage their tax responsibilities while safeguarding sensitive information, thereby ensuring smooth operations and compliance with IRS regulations.Schedule a <a href=\"https:\/\/calendar.app.google\/FrVHEtfZKFHKfhXd9\"><u>free 15 minutes meeting<\/u><\/a> with us.&nbsp;<\/p>\n\n\n\n<p><strong>Our Contact<\/strong> : +1 908.955.0696 | <a href=\"mailto:contact@suryapadhiea.com\"><u>contact@suryapadhiea.com<\/u><\/a> | <a href=\"mailto:services@surefintaxsvs.com\"><u>services@surefintaxsvs.com<\/u><\/a> | <a href=\"https:\/\/suryapadhiea.com\/\">Home<\/a><\/p>\n\n\n\n<p>Follow Us : <a href=\"https:\/\/www.youtube.com\/@surefintax\"><u>YouTube<\/u><\/a> | <a href=\"https:\/\/www.facebook.com\/surefintax\"><u>Facebook<\/u><\/a> | <a href=\"https:\/\/www.linkedin.com\/company\/surefinancial\"><u>Linked In<\/u><\/a>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Losing a job or transitioning to self-employment is stressful enough without the &#8220;sticker shock&#8221; of COBRA premiums. Because you are now paying 100% of the premium (plus a 2% administrative fee), these costs can quickly become one of your largest annual expenses. The good news? The IRS generally views COBRA premiums as a qualified medical [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[21,14,9,7],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts\/505"}],"collection":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/comments?post=505"}],"version-history":[{"count":3,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts\/505\/revisions"}],"predecessor-version":[{"id":509,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts\/505\/revisions\/509"}],"wp:attachment":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/media?parent=505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/categories?post=505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/tags?post=505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}