it doesn't pay to gamble... and win

[snoozer]

So my buddy is doing his taxes the correct way...

In the state of michigan, you do not get to subtract your loses, you only count winnings. So on the year, he won $16000, but lost $14000. On his state of michigan taxes form, he had to add the $16000 to his income, but he does nothing with the $14000 in losses.

Here is was the SOM website says:

Are lottery/casino/gambling winnings taxable? Can I subtract my gambling losses? Do winnings have to be included in household income? If so, on what line?

Answer:
Gambling/lottery winnings are subject to Michigan income tax to the extent that they are included in your federal adjusted gross income. The Michigan Income Tax Act has no provision to subtract your losses on the Michigan income tax return. Also, you cannot net the winnings and losses.

 

[jer-z jock]

So my buddy is doing his taxes the correct way...

In the state of michigan, you do not get to subtract your loses, you only count winnings. So on the year, he won $16000, but lost $14000. On his state of michigan taxes form, he had to add the $16000 to his income, but he does nothing with the $14000 in losses.

Here is was the SOM website says:

Are lottery/casino/gambling winnings taxable? Can I subtract my gambling losses? Do winnings have to be included in household income? If so, on what line?

Answer:
Gambling/lottery winnings are subject to Michigan income tax to the extent that they are included in your federal adjusted gross income. The Michigan Income Tax Act has no provision to subtract your losses on the Michigan income tax return. Also, you cannot net the winnings and losses.

Actually it pays plenty to gamble and win, just not when you claim it. Is dude crazy? How in the hell can taxing winnings be justified if you cant get credit for losses? man is that a win win for the state, so if you lose 100k in the lottery plays pick its and numbers you just lose but if you win 10k they want almost 3k back:shrug: wow

 

[zoomer]

So my buddy is doing his taxes the correct way...

In the state of michigan, you do not get to subtract your loses, you only count winnings. So on the year, he won $16000, but lost $14000. On his state of michigan taxes form, he had to add the $16000 to his income, but he does nothing with the $14000 in losses.

Here is was the SOM website says:

Are lottery/casino/gambling winnings taxable? Can I subtract my gambling losses? Do winnings have to be included in household income? If so, on what line?

Answer:
Gambling/lottery winnings are subject to Michigan income tax to the extent that they are included in your federal adjusted gross income. The Michigan Income Tax Act has no provision to subtract your losses on the Michigan income tax return. Also, you cannot net the winnings and losses.

Snoozer, gambling losses can only be deducted against winnings. You have the winnings. You can deduct DOCUMENTED losses up to an equalamount of winings. In this case, if losses are DOCUMENTED (casino W/L statements) he'd be liable on $2000 winnings only (the difference)
Call an accountant, he'll show you where you claim it on your taxes.

snoozer, I went back and read this again and see you are referring to your state taxes. Not sure about your state. Sorry

 

[zoomer]

http://www.cga.ct.gov/2008/rpt/2008-R-0448.htm


This link details which states allow and which don't.
You are correct, Michigan does not.