Must I report the gambling winnings received from a Michigan casino or horse track if I am a resident of a reciprocal state?

Yes. All taxpayers, regardless of residency, must report gambling winnings won in Michigan on form MI-1040.

The reciprocal agreement does not apply to gambling winnings. Prizes won from Michigan casinos or race tracks by a nonresident taxpayer after September 30, 2003 are subject to Michigan income tax.