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Level 3
September 29, 2022
Question

Gambling losses should not flow through to state Michigan return if client doesn't itemize.

  • September 29, 2022
  • 2 replies
  • 10 views

Recently we had the state of Michigan adjusted returns regarding state return 2021 priorly claimed Gambling losses. Even if you have losses, Michigan will not allow gambling losses if you choose a standers deduction on federal returns. If you fill in the gambling losses itemize section and decide not to itemize, ProSeries will flow through the gambling losses to state return starting in 2021. This issue will create an inaccurate return for the state of Michigan. Is there any suggestion to illuminate the error. 

Note: schedule 1 state of Michigan will not allow you to overwrite gambling loss that flow through from federal return. 

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    2 replies

    sjrcpa
    Level 15
    September 29, 2022

    What software are you using? This would help other users.

    The more I know the more I don’t know.
    RTSAuthor
    Level 3
    September 29, 2022

    ProSeries Basic 

    taxiowa
    Level 8
    September 30, 2022

    Ahh!  Don't enter gambling losses on federal return if they are not able to itemize federal.  Whats not entered can't carryover to Michigan.  And Go Hawkeyes tomorrow!!!!

    sjrcpa
    Level 15
    October 1, 2022

    Hi @taxiowa 

    haven't seen you in a while.

    The more I know the more I don’t know.