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Another Reason that Hand Pays SUCK - for us older folks anyways

Discussion in 'Casino Gaming' started by nostresshere, Aug 3, 2015.

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  1. nostresshere

    nostresshere Mr. Anti Debit Card

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    So, I play lots of slots and get lots of hand pays each year. These are all reported on the first page of my IRS-1040. Then the same amount is deducted on the deduction section.

    BUT - the Social Security and Medicare folks use the number of the front page as my annual income. So, I pay another $1,500 a year for Medicare because I am high income.

    High Income my ass.

    Since I always wind up in the negative, I need to avoid high pay slot machines, or just skip going to casinos all together.

    Sucks - big time.
     
  2. h0und10

    h0und10 Low-Roller

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    Sounds like its time to switch to blackjack!
     
  3. C0usineddie

    C0usineddie VIP Whale

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    Do the math before you play.
     
  4. saintpauljeff

    saintpauljeff VIP Whale

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    I'll tell you what sucks, never winning anything ever on a slot machine
     
  5. nostresshere

    nostresshere Mr. Anti Debit Card

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    Another person just PM'd me saying it happened to him two years ago as well.
     
  6. B S

    B S MIA

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    Just lower your annual gambling budget by the $1,500. If you expect to lose $10,000 for the year, cut it short.

    Is it fair? No. Does it make sure you aren't out extra money? Yes.
     
  7. PPtraderal

    PPtraderal Low-Roller

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    As a tax guy, I can tell you that it's unfair, because they take your adjusted gross income not your taxable income which is after deductions are applied. I know a few people who got ground up in this. My friend had $ 62,000.00 in W-G forms but an actual loss for the year of (32,000.00). Alas, for medicare purposes his income was 62,000.00 higher than his real income. He now plays the same amount of money but plays lower limit machines. He's a slot junkie and a fellow senior. The slots keep him moving.
     
  8. Hobofrank

    Hobofrank Prime Minister of Idiocracy

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    easy peasy, stop playing slots
     
  9. progrocker2112

    progrocker2112 Low-Roller

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    Yeah, this was a small surprise to me. Even younger people can be affected, as my hit last year meant that I was not able to deduct all of my student loan interest (deduction gets prorated after your AGI gets too high). Luckily this ended up only being a hundred or so dollar difference to me, but could more negatively affect a recent graduate with a higher balance and interest rate.
     
  10. nostresshere

    nostresshere Mr. Anti Debit Card

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    Either I do not get what you are saying, or you do not understand.

    FYI - I did not "earn" anything. All losses.
     
  11. CoachSt

    CoachSt Low-Roller

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    Sorry to hijack - if I win say $5k hand pay . . . Do you take all the cash, or isn't there an option that the casino keep a tax percentage? At what level of a hand pay would you let casino withhold taxes? $8k?

    Or am I totally clueless of how that works? I have hit 2 $1200 hand pays and it didn't help my taxes.
     
  12. Mrs. K.

    Mrs. K. Low-Roller

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    You could bring it up with your congressman. Sounds like an interesting issue they might want to look into.
     
  13. merlin

    merlin VIP Whale

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    The point is that you should get all the money and still pay no taxes(and no other tax consequences) since the person loses money(and lots of it), during the year.

    I am younger and have always offset my w2g's on my taxes, someone who doesn't itemize or the elderly are screwed.
     
  14. B S

    B S MIA

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    I did understand.

    Let's say you expect to lose $10,000 for the year. I order to pay for the $1,500, you could stop when you lose $8,500, depending on the W-2Gs you could adjust it. I think there are other ideas that have been posted that would work better for you though. My approach was obviously narrow on a very boroad topic.
     
  15. Joe

    Joe VIP Whale

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    Just to add to this, the same thing happens for the Affordable Health Care program. They base their income results on AGI. Go too high on AGI and lose the health care subsidy.
     
    Christmas
    My wife's birthday
  16. undathesea

    undathesea Grandissimo

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    Maybe you should start gambling under a different SSN? :thumbsup:
     
  17. nostresshere

    nostresshere Mr. Anti Debit Card

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    Which brings up a related question. Does the $5 a day you earn while in the Federal Pen (after convicted of SS, IRS or money laundering violations) count as income? LOL!
     
  18. nostresshere

    nostresshere Mr. Anti Debit Card

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    Hey nostress,

    I 'm reading your post about handpays. I'm still 2.5 years away from Medicare, but just wondering if there is scale on income, or just a cut-off point on income?
    With ACA (Obama Care) there is a cut-off point. Earn too much on AGI and you lose the subsidy
    .

    Someone sent me the question above via PM. I will answer here to help others.

    It is a moving scale. Here is the link

    By the way, got a letter today that my Drug Cost just went up as well... even though I LOST money on slots.
     
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