Gambling surprise for retiree?

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Subject Author Date Gambling surprise for retiree? tomchand 02-02-2009  Re: Gambling surprise for retiree? Phil Marti 02-02-2009  Re: Gambling surprise for retiree? John H. Fisher 02-02-2009
Posted by tomchand on February 2, 2009, 4:23 pm Please log in for more thread options Retiree loves the slots. Plays all day long, wins some, loses some. Comes out even if she's lucky. I've told her for years to stay out of the casinos, she tells me to mind my own business. This year she has about 15,000 of gambling winnings and about 20,000 of gambling loses. Winnings on line 21, losses to the extent of gains on schedule A. Wait a minute - owes $1000 when last year had a refund of $500! What's going on here? Ah - the increase in provisional income made an extra $10,000 in her social security taxable even though she didn't have a dime in additional "income"! Am I missing something here? -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Phil Marti on February 2, 2009, 6:02 pm Please log in for more thread options > Retiree loves the slots. Plays all day long, wins some, loses some. > Comes out even if she's lucky. I've told her for years to stay out of > the casinos, she tells me to mind my own business. > > This year she has about 15,000 of gambling winnings and about 20,000 > of gambling loses. Winnings on line 21, losses to the extent of gains > on schedule A. > > Wait a minute - owes $1000 when last year had a refund of $500! > > What's going on here? > > Ah - the increase in provisional income made an extra $10,000 in her > social security taxable even though she didn't have a dime in > additional "income"! > > Am I missing something here? You mean in addition to someone who takes your advice? No. Maybe she'll listen now. -- Phil Marti Clarksburg, MD -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by John H. Fisher on February 2, 2009, 11:32 pm Please log in for more thread options On Feb 2, 4:23 pm, tomch...@gwi.net wrote: > Retiree loves the slots. Plays all day long, wins some, loses some. > Comes out even if she's lucky. I've told her for years to stay out of > the casinos, she tells me to mind my own business. > > This year she has about 15,000 of gambling winnings and about 20,000 > of gambling loses. Winnings on line 21, losses to the extent of gains > on schedule A. > > Wait a minute - owes $1000 when last year had a refund of $500! > > What's going on here? > > Ah - the increase in provisional income made an extra $10,000 in her > social security taxable even though she didn't have a dime in > additional "income"! > > Am I missing something here? Make a note of it!!! Additional consequences are that one might lose the ability to claim their parent as an exemption (even if the parent's social security is minimal) because the win (actually loss) shows up as income to the parent. Veterans who might other wise qualify for medical benefits, at no cost, lose that benefit (even though there was actually a loss) 'cause the taxpayer must list the winnings as income. As you mention, Social Security income may become taxable (even though the gambling has produced a loss). Those who cannot itemized deductions also must eat the tax created by winnings which cannot be deduction (even though the winnings may have developed into a loss). SAD!!!! -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Worker, Retiree, and Employer Recovery Act of 2008 (H.R. 7327) re: RMDs for age 70-1/2 in 2009 December 24, 2008, 4:38 pm Surprise from the IRS re:CP2000 June 1, 2009, 4:19 pm Dealing with surprise restriction on dependent care account April 23, 2006, 2:02 am Gambling Jackpots January 18, 2008, 9:02 pm Self Employment Income of Gambling Winnings August 4, 2007, 4:57 pm Re: Self Employment Income of Gambling Winnings August 6, 2007, 10:33 pm Re: Self Employment Income of Gambling Winnings August 6, 2007, 10:33 pm Re: Self Employment Income of Gambling Winnings August 7, 2007, 11:26 pm Re: Self Employment Income of Gambling Winnings August 7, 2007, 11:27 pm Re: Self Employment Income of Gambling Winnings August 8, 2007, 7:08 pm