Can you deduct crypto gambling losses on your taxes?

Yes, but with major limitations. Gambling losses can only be deducted up to the amount of your gambling winnings, and only if you itemize deductions on Schedule A. Excess losses cannot be carried forward. Starting in tax year 2025 (filed in 2026), gambling loss deductions are further capped at 90% of gambling winnings under the One Big Beautiful Bill. If your standard deduction exceeds your total itemized deductions, you cannot deduct gambling losses at all.