vpFREE2 Forums

Bob Dancer's LVA - 20 JAN 2015

#1

A good column as usual Bob. However you did not make a distinction between limit and no limit Hold'em. In no limit Hold'em you will find the better players. If you can win at $20-$40 limit Hold'em does not mean you will crush $1-$2 limit Hold'em, in fact you will probably be a loser. Sure the players are much worse but a typical casino rake of $4 per hand will destroy anybody. There may not be anybody in the world that can beat $1-$2 limit Hold'em and if that rare person exists that can it would be a total waste of their talent making less than $6 per hour. Now you are right to say that if someone can win at $20-$40 no limit Hold'em he will destroy $1-$2 no limit Hold'em. On the video poker scene I am getting to old to play (59 later this year). I will not play video poker where I can get W2G's if I am getting Medicare. Is it FPDW progressive for me leaving at $1200 or more progressive? I hope not, the dollars are too little for me. Oh how I will fall down in class - from hundreds of thousands of dollars of W2G's per year to zero! Advice to all young video poker players - get annuitized early and quit (certainly quit if you're getting Medicare). My prediction, not many people are going to listen to me even though I am almost always right. An example in the casinos when I see a person take a cash advance I will tell that person not to take that cash advance to gamble. You are paying a cash advance fee to lose money gambling. Those that understand what I'm saying will agree with me and take the cash advance anyway. I have not had one person agree with me and not take the cash advance because of what I told him (her). It might be table poker only for me in a few years. Of course if I'm annuitized no gambling (yeah) is in my future.

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#2

I will not play video poker where I can get W2G's if I am getting Medicare.

W2-G's affect your MAGI whether you are a net winner or a net loser for a given year. With a large enough MAGI your medicare and prescription plan premiums are increased.

I looked up the current numbers. In a worst case scenario, for a MAGI of about $400,000, this can amount to as much as about $3,600 per year increase in premiums for a married couple filing jointly.

Thank you Federal government! <GROAN>

..... bl

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#3

Can you not avoid the Medicare increase problem by filing as a professional?

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On Jan 27, 2015, at 8:02 PM, bornloser1537@yahoo.com [vpFREE] <vpFREE@yahoogroups.com> wrote:

>I will not play video poker where I can get W2G's if I am getting Medicare.

W2-G's affect your MAGI whether you are a net winner or a net loser for a given year. With a large enough MAGI your medicare and prescription plan premiums are increased.

I looked up the current numbers. In a worst case scenario, for a MAGI of about $400,000, this can amount to as much as about $3,600 per year increase in premiums for a married couple filing jointly.

Thank you Federal government! <GROAN>

..... bl

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#4

Say WHAT, Sayitsme?

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#5

Can you not avoid the Medicare increase problem by filing as a professional?

It is my understanding that the Medicare premium increase depends only on the value of your MAGI (Modified Adjusted Gross Income), which is a slight modification to the last line on page 1 of your Form 1040.

I do not know how filing as a professional affects what ends up on your Form 1040. I am guessing it depends on how Schedule C treats your gambling income.

..... bl

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#6

There are several ways to avoid or reduce the extra Medicare premiums. You can file as a professional gambler on schedule C so only your net profit is reported on 1040 line 12 (business income).
  
Most of us will not qualify as professional gamblers, but you can report your winnings on line 21, (other income), using the Session method instead of your W-2G total.. Your total winnings per session should be lower than your total W-2Gs. You can manage your gambling to minimize session winnings. Do not leave the casino with a small win. Play until you reach breakeven or a small loss. If you win big early continue playing as long as you can as this will usually greatly reduce your net win for the session.
  
If you have health insurance and they do not require you to get Medicare Part B you can refuse it. You can always file for it later. There is an open season each year and a slight penalty for each year you delay. Be sure to take Part A Hospital insurance at age 65 because it is free.
  
Chris

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#7

you can report your winnings on line 21, (other income), using the Session method instead of your W-2G total.. Your total winnings per session should be lower than your total W-2Gs.

Am I reading this correctly? Would not there be fairly large questions asked (like in an audit) if what you insert on line 21 is significantly lower than the sum of your W-2G's?

..... bl

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