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 Pro, from the Michigan Tax Return Menu select:
- Subtractions from Federal AGI
- Miscellaneous Subtractions
- Other Subtractions from Fed AGI - Enter a description, e.g., "wagering losses" and enter the amount of the losses as a positive number. Do not enter an amount greater than winnings.
Additional Information:
Michigan State Tax Information
TaxSlayer Pro strives to keep the information on this page timely and accurate but makes no promise or guarantee about the timeliness, accuracy, or completeness of the contents of this page. This is general information and is not intended to be tax advice. You are encouraged to also review the underlying state resources and publications.