Attorney General Jennifer Granholm expressed her concern, which lead to a change in the casino's advertising campaign. Excess gambling losses cannot be carried forward. Instead, you must report the full amount of your winnings as income and claim your losses up to the amount of winnings as an itemized deduction.
By figuring gambling income on a daily basis rather than wager-by-wager gambling winnings are directly offset by gambling losses and thus become excludable from Michigan income tax. Refer to PublicationU. Tax Guide for Aliens, and PublicationU. Your diary should contain at least the following information: In addition to your diary, you should also have other documentation.
When you have gambling winnings, you may be required to pay an estimated tax on that additional income. You must keep an accurate diary or similar record of your losses and winnings.
They are not all inclusive. Even though the itemized deduction for gambling losses can offset gambling income, it is a below-the-line deduction i. The following information should be maintained in a log: Jimmy wants to continue his winning streak on Saturday. As a starting point, please remember - don't shoot the messenger!
A record of the machine number and all winnings by date and time the machine was played. Tax Treaties, for michigan gambling losses deduction information. For causal gambling slots, poker, blackjack, horse racing, etc. Bob Reinhart, a C. Please consult a tax professional before relying on any information contained in this post. Supplemental records include any receipts from the casino, parlor, etc.
These record keeping suggestions are intended as general guidelines to help you establish your winnings and losses. Recordkeeping To deduct your losses, you must keep an accurate diary or similar record of your gambling winnings and losses and be able to provide receipts, tickets, statements, or other records that show the amount of both your winnings and losses. English Topic Number - Gambling Income and Losses The following rules apply to casual gamblers who aren't in the trade or business of gambling.
You may recall the controversy created last summer when Casino Windsor was advertising "tax-free" winnings on a Detroit billboard. Nonresident Alien Income Tax Return. This rule really does not make sense and already has been the subject of some discussion in the Michigan Legislature.
This post contains general tax information that may or may not apply in your specific tax situation.
However, it is not at all clear whether the taxing authorities would respect such a characterization. Proof of winnings and losses. Gambling losses can be deducted as itemized deductions so long as the deduction does not exceed the amount of the gambling winnings. Your tax liability depends on your particular facts and circumstances.
A record of the number of games played, cost of tickets purchased and amounts collected on winning tickets. The number of the table at which you were playing. This post is an overview of federal and Michigan treatment of gambling income and losses.
Gambling income includes but isn't limited to winnings from lotteries, raffles, horse races, and casinos.
Significantly, under the tax rules, you are required to report all winnings, even those that are less than the dollar threshold that cause the casino or track to issue a W-2G to you. With 18 tribal casinos and two Detroit casinos now open in the State of Michigan, many residents are, for the first time, faced with figuring out how to report their gambling winnings and losses.
It includes cash winnings and the fair market value of prizes, such as cars and trips. Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check cashing records. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return.
AGI is used to calculate various phaseouts for credits and deductions.
Supplemental records include unredeemed tickets and payment records from the racetrack. The state begins with your federal adjusted gross income, which includes gambling winnings, and does NOT allow a deduction for any itemized deduction - such as gambling losses. Supplemental records include unredeemed tickets, payment slips and winning statements.
Racing horse, harness, dog, etc. For information on withholding on gambling winnings, refer to PublicationTax Withholding and Estimated Tax. Therefore, taxpayers truly do get taxed on their winnings with no offset for their losses on their Michigan return. IRS Publication provides the following advice regarding documenting gambling winnings and losses: Same Example daily basis: