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(코리아타운뉴스) Casino Winning Could Affect SSI and Medi-Cal


$1,200 or more at casino slots must be reported
Benefits decrease as much as the winning prize

Los Angeles resident Daniel Shim, 67, recently won $5,000 while playing the slot machine at a casino he visited with friends. However, the joy did not last long. He was soon told that winning that much money at the casino could affect his eligibility for Supplemental Security Income (SSI) and Medi-Cal benefits.

Many Korean-American senior citizens still remain unaware of how winning money at the casino or through the lottery could affect their eligibility for various benefits.

First of all, income from playing at the casinos are categorized as funds that must be included in tax reports. An income of at least $1,200 from slot machines and $5,000 at poker tournaments must be reported to the IRS in addition to filling out the W-2G forms.

For lotteries, a 39.6 percent tax rate is applied to the income.
Then, how would earning money through gambling or playing the lottery affect one’s benefits?



Social Security benefits remain unscathed as those are counted as non-working income. However, SSI benefits are affected immediately. If one records an income of at least $10,000 from gambling, the SSI benefits could be cut for months. However, Social Security Disability will not be affected.

Both Medicaid and Medicare benefits are also affected.
If one reports a considerably higher amount of income, Medicare part B and D premiums could double or even triple.

One may expect to find a workaround by reporting the losses, but modified adjusted gross income (MAGI) could produce a different result. MAGI is applied to one’s eligibility for IRA savings, Social Security tax amount, Medicare premium and other various insurance packages.

For Medicaid, beneficiaries who have won money from the lottery or gambling could lose their eligibility.

Finance experts advised keeping such income in personal bank accounts and using it to repair a home, purchasing a car, paying for a life insurance package or opening a trust bank account.

“It may seem unjust to lose benefits over some lucky money that someone wins at the casino,” a Korean accountant said. “However, they would still be better off seeking expert advice and reacting accordingly.”


By Brian Choi



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