The Michigan Wager deduction is equal to the wagering losses claimed by the taxpayer as an itemized deduction on the federal income tax return for the same tax year.
A casual gambler may only use this new deduction if the taxpayer elected to itemize deductions on the federal income tax return rather than take the standard deduction.
As before, a gambler can only use wagering losses to reduce gambling winnings and cannot reduce taxable gambling winnings below zero.
To enter the Gambling Wager (losses) from the main menu of the Michigan return select;
- Subtractions from Federal AGI
- Miscellaneous Subtractions
- Other Subtractions from Fed AGI
Additional Information