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
MI DOT: Treatment of Gambling Bulletin
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