Another tax booby trap for seniors

[olds442jetaway]

I just found out this the hard way. If your modified adjusted gross income on your federal income tax return gets too high because of having many W2G’s issued, you’re medicare part B premiums could double or even triple each month. Writing off your federal gross gambling income as an itemized deduction, does not help you out either as far as the Medicare part B premiums goes. Bummer! Talk about adding insult to injury!!!

[OTABILL]

Thanks for pointing that out Olds.

[billryan]

Professional tax advice often pays for itself.

[FloridaPhil]

I just found out this the hard way. If your modified adjusted gross income on your federal income tax return gets too high because of having many W2G’s issued, you’re medicare part B premiums could double or even triple each month. Writing off your federal gross gambling income as an itemized deduction, does not help you out either as far as the Medicare part B premiums goes. Bummer! Talk about adding insult to injury!!!

For most people, playing VP in retirement is different than playing VP when you are still working. I talked about this in another post this morning. Take a look and see if you agree.

[DaBurglar]

It's a known fact of the casino business....what we would call "the truly rich" or more derogatory "filthy rich", very few of these people actually gamble in casinos. The few that do, known as whales, see tremendous competition for their time amongst the world's biggest casinos.

My point? The tax changes that took place a year ago favor the filthy rich so disproportionately, that the elimination of gambling write-offs was obviously done because it doesn't impact the intended beneficiaries.

What should you do? Only play games where you are not likely to get a w2g! Or limit yourself to a few w2g jackpots and then downshift to quarters once you hit it.