mrbowling300
EOG Dedicated
Retroactive to 1/1/2021, State of Michigan now allows you to deduct gambling losses to the extent of gambling winnings, following the IRS statute.
For example, if you had W2-G's totaling $100,000 with losses of $100,000, you would owe the IRS zero, because you could deduct the losses against your winnings. With State of Michigan, in the past, you would be required to pay 4.25% on your $100,000 W2-G winnings, even though your federal gambling income was zero, as the State of MI tax basis is basically your adjusted gross income. State of Michigan does not allow deductions for federal itemized deductions (gambling losses are in that category). So you would owe MI $4,250.
But now with this change, $100,000 of W2-G income, $100,000 of losses, nets to zero, thus zero owed to MI!
Big break for gamblers in the State of MI.
For example, if you had W2-G's totaling $100,000 with losses of $100,000, you would owe the IRS zero, because you could deduct the losses against your winnings. With State of Michigan, in the past, you would be required to pay 4.25% on your $100,000 W2-G winnings, even though your federal gambling income was zero, as the State of MI tax basis is basically your adjusted gross income. State of Michigan does not allow deductions for federal itemized deductions (gambling losses are in that category). So you would owe MI $4,250.
But now with this change, $100,000 of W2-G income, $100,000 of losses, nets to zero, thus zero owed to MI!
Big break for gamblers in the State of MI.
