Gambling losses claimed by the taxpayer as an itemized deduction on the federal income tax return can be deducted on their Michigan return as a miscellaneous subtraction on Schedule 1 if they elected to itemize deductions on the federal income tax return rather than take the standard deduction. This is true for Michigan residents as well as nonresidents, although nonresidents may only subtract wagering losses attributable to wagering transactions placed at or through a casino or racetrack located in Michigan.
Wagering losses cannot reduce winnings below zero.
To enter the wagering losses in the Michigan individual tax return in TaxSlayer ProWeb, from the Michigan Return menu select:
- Subtractions from Income
- Other Miscellaneous Subtractions
- Enter other qualifying subtractions to Federal Adjusted Gross Income - Enter the amount of wagering losses as a positive number. Do not enter an amount greater than winnings.
- Enter the description of the Other Subtractions entered above - Enter a description, e.g., "wagering losses".
Additional Information:
Michigan State Tax Information
MI DOT: Treatment of Gambling Bulletin
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