Modern Tax Advisors

Dear Valued Clients,

It is with a heavy heart and profound sadness that we share the news of the passing of our dear friend and colleague, Regina Hatton.
Regina was an integral part of our firm, but more than that, she was a person of immense kindness and warmth who touched the lives of everyone she worked with. We know that many of you shared a close professional bond with her and valued her dedication, expertise, and the genuine care she brought to her work every day.
Our entire team will deeply miss her. As we navigate this difficult time, our thoughts and deepest sympathies are with her daughters and her family. We are committed to honoring Regina’s legacy by continuing to serve you with the same excellence and integrity that she personified.
We understand that you may have questions regarding your ongoing matters. We are working closely as a team to ensure a seamless transition and will be reaching out individually where necessary.
Thank you for your understanding and for your shared appreciation of the wonderful person Regina was.
Link to obituary and services for those interested

https://www.evergreenmemorialfuneralhome.com/obituaries/Regina-Hatton?obId=48359341

Sincerely,
Modern Tax Advisors

🃏 Gambling & Your Taxes: The "Phantom Income" Trap 🎰

If you spent any time at the tables, online casinos or sports betting apps this past year, there is a serious tax trap you need to know about. Many people believe they only owe taxes if they "finished the year up," but the IRS sees it very differently.
At Modern Tax Advisors, we are seeing more neighbors get hit with unexpected bills because of how gambling winnings impact your Adjusted Gross Income (AGI).

⚠️ The "Gotcha": Winnings vs. Losses
The IRS requires you to report your total winnings as income. You are not allowed to just subtract your losses and report the difference.

• The Problem: Your winnings increase your AGI, even if you lost that money back the next day.
• The Trap: Because your AGI is higher, you may suddenly find yourself "earning too much" to qualify for critical tax benefits like the Child Tax Credit, Student Loan Interest Deductions, or even Lower Medicare Premiums.
• The Loss Limit: You can only write off your gambling losses if you itemize your deductions. If you take the Standard Deduction (which most people do), you pay tax on every dollar you won, and your losses count for zero.

📉 New for 2026: The 90% Rule
Under the new One Big Beautiful Bill (OBBBA), the rules have tightened even further. For the 2026 tax year, you can now only deduct 90% of your losses against your winnings.

Example: If you won $10,000 but lost $10,000, you still have to report $1,000 as taxable "phantom income." You’re paying taxes on money you don’t even have!

📂 DON'T FILE TOO EARLY!
We cannot stress this enough: Download your 1099s and W-2Gs before you submit your return. Many sportsbooks and casinos don't mail these anymore; you have to log in and find them. If you file without them and the IRS receives a copy later, it will trigger an automatic (and expensive) audit or adjustment.

👋 Let our team help. Don't let a few lucky bets ruin your tax return. Our specialized staff in Spring Lake is here Monday through Friday to help you navigate these complex rules and protect your credits.

📍 Visit us: 215 Morris Avenue, Spring Lake, NJ
📞 Call the team: (732) 359-6672
🌐 Web: ModernTaxAdvisors.com