Do Gambling Winnings Affect Social Security Disability Benefits

• Gambling And Social Security
• Do Gambling Winnings Affect Social Security Disability Benefits Status
• Do Gambling Winnings Affect Social Security Disability Benefits Taxable

If you are getting SSDI - Social Security Disability Insurance benefits (and not SSI), then no, you do not have to report the gambling winnings to Social Security. SSI is need based and requires that sort of notice. My mom called the person that does our taxes and said that it wasn't going to be a problem because it wasn't $4k. But then I went to a social security office and they told me that I would have to return this monthly check and I would have to spend the remaining of the money. So i have no idea what to do or who to believe. I'm getting really scared. The distinction between earned income and ordinary income is for such issues as earned income tax credit and qualifying for social security benefits. Almost any source of money, including gambling. Social Security Disability Insurance (SSDI) benefits are for people who have worked and paid taxes into the Social Security system over several years. To receive SSDI benefits, you must have been out of work for at least one year or expect to remain out of work for at least one full year due to illness or injury.

Q: I receive Social Security disability benefits. I am a finalist in a contest where I could win $100,000. Will I lose my disability benefits if I win all that money?

A: If you are indeed receiving SOCIAL SECURITY disability benefits, then you will keep those benefits even if you win all that money.

Social Security is considered an 'entitlement' program, as opposed to a welfare program. In other words, you worked and earned your Social Security disability benefits. So you keep those benefits whether you have $1 in the bank or $100,000!

But many people confuse the Social Security disability program with the Supplemental Security Income, or SSI, disability program. SSI is a federal welfare program managed by the Social Security Administration. If you are receiving SSI disability benefits from SSA, then winning all that money will make you ineligible for the program. Like any welfare program, SSI is intended for people who are poor and need money. If you win $100,000, you aren't poor and you don't need money — at least for a while anyway.

So for your sake, I hope you are getting Social Security disability benefits and I hope you win the contest!

Q: I am 67 years old and get about $2,000 per month in Social Security retirement benefits. My wife is 61 and has been getting SSI for several years. She currently gets about $1,100 per month. Is there some point — soon I hope — when she can start getting some of my Social Security?

A: Yes — when you die! So I really don't think you want that to be anytime soon.

I purposely placed your question following the first one because it further illustrates the point I made about people confusing the Supplemental Security Income, or SSI, with Social Security disability benefits.

Your wife must be getting Social Security disability benefits, not SSI. The reason I know that is because SSI simply doesn't pay benefits as high as $1,100 per month.

Because her $1,100 monthly Social Security disability benefit is more than the maximum spousal supplement she'd be due on your account, which is 50 percent of your rate, or $1,000, that means she isn't eligible for a portion of your Social Security — while you're still living.

But when you die, assuming it's before she dies, then your wife could be due a widow's supplement up to 100 percent of your rate. In other words, she'd keep getting her $1,100 per month disability benefit but would also start getting $900 in widow's benefits to take her up to your $2,000 rate.

Gambling And Social Security

Q: Can older people get SSI, or is it just a Social Security disability supplement?

A: As I alluded to in the prior two answers, SSI is not a Social Security supplement. SSI is a separate and distinct government program that has nothing to do with Social Security other than the fact that it happens to be run by the Social Security Administration.

And, yes, older people can get Supplemental Security Income. SSI is a federal welfare program that pays monthly benefits to the elderly poor, folks 65 and older, and to poor people under 65 who are disabled.

To find out more about Tom Margenau and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

The odds of winning the lottery are against you, but it could happen! If you do win the lottery, you might wonder how your Social Security Disability Insurance (SSDI) will change. Obviously, if you’ve won hundreds of millions of dollars, whatever benefits you received will pale in comparison. You probably won’t worry about losing out. However, you can win smaller amounts as well. For example, winning $1,000 is certainly nice, but how that could affect your Social Security benefits could be very worrisome. Because of this, you’ll want to learn how lottery winnings and SSDI benefits affect each other.

Lottery Winnings and SSDI Benefits

Do Gambling Winnings Affect Social Security Disability Benefits Status

The way SSDI benefits work is that if you experienced a mental or physical disability that prevents you from being able to work, and if you’ve paid your Social Security taxes while working, then SSDI will provide you with a monthly benefit payment. This payment isn’t the same for everyone. Instead, it’s based on what your income was. This means that you can qualify for SSDI benefits no matter what income bracket you belong to.

Although there are no income limits on being able to qualify for SSDI benefits, there are limits on how much money you can earn while you are on SSDI. This is because if you are capable enough to earn a certain amount of money, you won’t be considered disabled. This limit on how much you can earn changes year by year in order to keep up with inflation. This year (2019), non-blind applicants can’t earn more than $1,220 per month, and blind individuals can’t earn more than $2,040 per month.

However, only “earned income” applies to SSDI income limits. Unearned income, which includes any income earned from investments, interests, spouse’s income or lottery winnings, do not have any limits. This means that no matter how much money you win playing the lottery, your SSDI payments will remain the same. If you’re on Supplemental Security Income (SSI), however, then it will be affected.

Lottery Winnings and SSI Benefits

Do Gambling Winnings Affect Social Security Disability Benefits Taxable

SSI is a bit different in that it provides supplemental income to disabled benefits who earn below a certain amount a year. SSDI is insurance, which you are paying for if you are paying Social Security taxes. SSI is a government welfare program. This means that the income limits are much more strict than those of the SSDI program.

In order to qualify for SSI, you have to have less than $2,000 in assets as an individual and less than $3,000 in assets as a couple. Individuals can make no more than $750 a month and couples can make no more than $1,125 a month. Unlike SSDI, this doesn’t just count “earned income.” This includes wages, money from investments, and lottery winnings. If you make over the limit, the Social Security Administration will take the amount that you went over and subtract it from SSI payments. This means that if you win a substantial amount of money playing the lottery, odds are you’ll no longer be able to collect SSI.

When it comes to lottery winnings and SSDI benefits, the amount you win should have no effect on your benefit payments. However, if you are on SSI as well, then there’s a good chance that you may no longer be able to collect those payments as a result of your lottery winnings. For more information on whether or not you qualify for SSDI payments, be sure to contact us anytime via phone at 602-952-3200 or by using our LiveChat feature. Consultations are free, so don’t wait; contact SSDA USA today!

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