Michigan will allow tax deduction for gambling losses

A customer looks over daily sheets inside FanDuel Sportsbook inside Footprint Center, Thursday, Sept. 9, 2021, in Phoenix. Arizona's first sports betting operations are now open in time for the start of the NFL season with live wagers allowed on college and professional sports. Betting began Thursday online and at the FanDuel Sportsbook at the downtown Phoenix arena where the Phoenix Suns play and at temporary betting windows at the Arizona Diamondbacks' Chase Field. (AP Photo/Matt York) (Matt York, Copyright 2021 The Associated Press. All rights reserved)

LANSING, Mich. – Michigan will start allowing people to claim a state income tax deduction for gambling losses they claim on their federal tax return.

The law, enacted by Gov. Gretchen Whitmer last week, is effective for the 2021 tax year and beyond.

It is expected to reduce state tax revenue by $12 million to $17 million a year.

Federal law allows gambling losses to be deducted by those who are able to itemize their deductions.