vpFREE2 Forums

Social Security & W2G

#1

I should clarify my previous post on this. The increased AGI does not
impact The SS benefit. It impacts the Medicare Part B. Medicare Part
B DEDUCTION for the premium goes up based on income.

Example: "Your 2008 deduction for Medicare Part B premium is $238.40."
          "This is $96.40 for the standard Medicare Premium
           PLUS $142.00 for the income-related monthly adjustment
           amount based on your 2006 income tax return"

This is in quotes as it comes from an actual letter notice from the SS
Admin dated 11-21-07. The individual this is happening to had a huge
gambling win in 2006 and an AGI well over the 410,00 threshold for
married filling jointly. So the SS Admin increases his Medicare premium
deduction that is taken out of his his SS check. So, even though SS
goes up in 2008 by 2.3% -- his actual check will be less in 2008 due to
the increased premium deduction fo the Med Part B.

Sorry if I confused anyone about the topic.

#2

While this does not apply to me (yet) I found your explanation very
clear and easy to understand. You sound very knowledgeable on the
subject. Just want to say thank you.

I should clarify my previous post on this. The increased AGI does

not

impact The SS benefit. It impacts the Medicare Part B. Medicare

Part

B DEDUCTION for the premium goes up based on income.

Example: "Your 2008 deduction for Medicare Part B premium is

$238.40."

          "This is $96.40 for the standard Medicare Premium
           PLUS $142.00 for the income-related monthly adjustment
           amount based on your 2006 income tax return"

This is in quotes as it comes from an actual letter notice from the

SS

Admin dated 11-21-07. The individual this is happening to had a

huge

gambling win in 2006 and an AGI well over the 410,00 threshold for
married filling jointly. So the SS Admin increases his Medicare

premium

deduction that is taken out of his his SS check. So, even though SS
goes up in 2008 by 2.3% -- his actual check will be less in 2008

due to

···

--- In vpFREE@yahoogroups.com, "advisorre2000" <Reyer@...> wrote:

the increased premium deduction fo the Med Part B.

Sorry if I confused anyone about the topic.

#3

There are actually 2 different things you have to consider about SS and income tax and your gambling gross win that increases your AGI:

1. A higher AGI can cause the premium for Medicare Part B to go up.

2. A higher AGI can cause you to have to pay taxes on your SS, which you don't have to do if you have a lower AGI.

Someone wrote: <<Furthermore, retirees can not file as
professional gamblers, so simply they have to pay
additional tax on their social security payments.>>

Retirees CAN and DO file as professional gamblers if they meet IRS standards for this.

Someone wrote: <<Anyways, Carl told me that at his age he can make all the money he
wants with no cut in Social Security and he doesn't even have to pay
income tax. >>

After 65, it is true that you can make as much money as you want and they won't cut your SS benefits. But whether it is taxable depends on the amount of your AGI.

In "Tax Help for Gamblers" Marissa and I give a whole long list of things that will be negatively impacted by a higher AGI. And someone who lives in a state that has state income taxes can be devastated financially!!!!

···

________________
Jean $�ott
The much-expanded new edition of my tax book,
including a new chapter on poker, is now available
to order at my Web site, http://queenofcomps.com/.

#4

Retirees CAN and DO file as professional gamblers if they meet IRS

standards

for this.

Jean, are these the standard IRS rules or is there anything additional
required for retirees?

Dick

···

--- In vpFREE@yahoogroups.com, "Jean Scott" <queenofcomps@...> wrote:

#5

<<> Retirees CAN and DO file as professional gamblers if they meet IRS
standards

for this.>>

<<Jean, are these the standard IRS rules or is there anything additional
required for retirees?>>

Nothing additional required for retirees than just the standard IRS rules. In fact, depending on your income from other sources, it might be easier for a retiree to file as a professional since gambling might be your major source of income and you might be able to "work" at it full-time if you don't have a regular job!!!

···

________________
Jean $�ott
The much-expanded new edition of my tax book,
including a new chapter on poker, is now available
to order at my Web site, http://queenofcomps.com/.