mrbowling300
EOG Dedicated
Gambling winnings are reported to the IRS using From W2-G. You are allowed to deduct gambling losses as an itemized deduction to the extent of your gambling winnings.
Here in Michigan, those gambling losses have historically been non-deductible. I have several clients who play video poker, slot machines, and can have a total of $50,000 or more of W2-G income with the losses to offset. In Michigan, the tax rate is 4.25%, so even though their net may be zero, to Michigan you would owe $2,125 on $50,000 of reported jackpots. For some, it got to the point where I told them to just have the casino withhold 4.25% for MI taxes.
Now, a bill has passed the Michigan House and awaits the governor's signature to align Michigan with the federal law where you can deduct losses to the extent of winnings.
For anyone in MI that is a recreational gambler this is huge for them.
www.legalsportsbetting.com
Here in Michigan, those gambling losses have historically been non-deductible. I have several clients who play video poker, slot machines, and can have a total of $50,000 or more of W2-G income with the losses to offset. In Michigan, the tax rate is 4.25%, so even though their net may be zero, to Michigan you would owe $2,125 on $50,000 of reported jackpots. For some, it got to the point where I told them to just have the casino withhold 4.25% for MI taxes.
Now, a bill has passed the Michigan House and awaits the governor's signature to align Michigan with the federal law where you can deduct losses to the extent of winnings.
For anyone in MI that is a recreational gambler this is huge for them.

Michigan Gambling Tax Deduction Awaiting Whitmer’s Signature | LegalSportsBetting.com
LANSING, Mich. - The Michigan House of Representatives passed a bill that creates a new state tax deduction for sports betting and other gambling losses
