Offset Those Winnings!
Michigan gambling taxes are getting clarifications. If you hit it big at a Michigan casino (or while playing blackjack from your phone) in 2021, here’s some good news. Historically, the IRS has allowed gambling losses to offset gambling winnings so that taxpayers are not paying tax on the money they don’t have.
Unfortunately, the State of Michigan never had a provision on the books that allowed a similar deduction, unfairly taxing Michigan patrons on the gross amount of their gambling winnings irrespective of losses.
Michigan Gambling Taxes
Frear no! A bill has passed both chambers of Michigan legislature with broad bipartisan support and heads to Governor Whitmer’s desk for signature to close this odd loophole and allow gambling losses to offset gambling winnings on the State of Michigan income tax.