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View Full Version : If your on Social Security, can you get Sweep income?


bdc63
January 12th, 2006, 7:07pm
My dad is retired and collecting Social Security, but he works part time as a night security guard at the front desk of an industrial park business building (making whatever the minimum allowed by the gov is to still collect SS).

Because he is there by himself and has to work to stay alert/awake, I thought sweeping might be a good hobby for him.

What I don't know is ... are sweep winnings considered income for retired people, and would this affect my dad's ability to receive his full SS?

Any help would be appreciated.

Bamared
January 12th, 2006, 7:18pm
No, Only earned wages or Self employment income counts For Social Security.

http://www.ssa.gov/pubs/10069.html

This is an SSA publication that explains this.

bluegown
January 12th, 2006, 7:24pm
Besides, if you are 65 you can earn an unlimited amount of $ and not be penalized.

Bamared
January 12th, 2006, 7:29pm
It's no longer age 65. My above link also explains this.

meek1643
January 12th, 2006, 7:30pm
Does that also appy to SSD? I am on a private plan. Going to read my declaration page.
Good vibes :gvibes:
Hope you dad turns out to be collecting win after win!! :gvibes:

pambanter
January 12th, 2006, 7:31pm
If he is on disability, yes. If it is ssi no. I don't know about retirement.

wackydackydoo
January 12th, 2006, 8:35pm
I'm on social security disability. You "ARE NOT" required to report an income tax if your reportable income is not over $25,000. In other words, if your SS plus wins does not amount to over $25,000, you are not required to report an income tax return.

nurse1998
January 12th, 2006, 8:46pm
please remember that all wins over $499 you must pay taxes on i won one that was $500 and forgot to claim last year and they wrote me a nasty gram saying i owed them money since i had gotten a refund check but no it does not affect ss benefits....

alycep06
January 12th, 2006, 8:47pm
my understanding is that the win is not earned income, especially if it is not cash so it does not jeopardize the SS money but taxes are still required

legaleagle
January 12th, 2006, 8:53pm
being on SS does not limit his income....

richardyello
January 12th, 2006, 8:57pm
Publication 525 page 27 at IRS.gov line 21 you have to claim in other income- note you put "prize" in the line and yes you may have to pay taxes on prizes if reported to IRS. Best to contact a CPA for complete details.
As far as affecting disabilty benefits, you are allowed a certain amout of personal property.
Does not affect Medicaid as far as MS but different in diff states.
Depends also if one is collecting SSI or SSDI. Purely Social Security alone- NO.

bdc63
January 12th, 2006, 8:57pm
Thanks everyone for all of the input and advise. Much appreciated.

richardyello
January 12th, 2006, 9:02pm
You pay taxes to IRS and get benefits from Social Security. So looking only at one side will do you no good. Must consider both.

wickedjen1960
January 12th, 2006, 11:56pm
I'm on SSDI, but still social security, if you win a prize of significant value, it can make all of your social security income taxable. That is significant in the sceme of things. Just something to keep in mind. I just married the love of my life in September of 2005 and my income or at least a portion will now become taxable because it combines with my husband's. :worry:

irishlass226
January 13th, 2006, 1:32am
I am ssdi, My 1000 GC win has not effected my eligibility for the ssdi program b/c it wasnt earned through work.
I do have to pay about taxes on this win ( & now my SSDI income)to the IRS
If I hadnt won this I would not of had to pay income tax this year. Actually it boosted me to just over the 25,000 limit.
However, I knew I would when I won and I am still 750 dollars ahead used the gc to do a lot of Christmas Shopping which on my ssdi I would never of afforded.


Hope this helps

meek1643
January 13th, 2006, 6:07am
I'm on social security disability. You "ARE NOT" required to report
an income tax if your reportable income is not over $25,000. In other words, if your SS plus wins does not amount to over $25,000, you are not required to report an income tax return.


you have to claim, oh well. I have to claim it I guess. I am going to get a new tax law book and read it. Hate when I have to pay them.

rbuske
January 13th, 2006, 7:01am
No, Only earned wages or Self employment income counts For Social Security.

http://www.ssa.gov/pubs/10069.html

This is an SSA publication that explains this.

Thanks so much for this link! My Mother was just asking about this . She is 62 in September, so I will give her the info.
:cool2:

wackydackydoo
January 13th, 2006, 7:02am
????

Re: Social Security Disability Benefits

I can't file a income tax return unless my income amounts to $25,000 or more for the year. I have no other combined income at this time. This is stated in the IRS guidelines and confirmed by my accountant.

All prizes/wins are considered "other income" on your tax return.

All prizes/wins are supposed to be reported as other income no matter how big or small the prize is and no matter if a 1099 was submitted or not (yes, that even means a $1.00 prize).

Some are under the impression that since a sponsor doesn't have to submit a 1099 on a prize unless it's $600+, you don't have to pay taxes on it. That's wrong. Some sponsors still do submit a 1099 on smaller prizes; but even if they don't, the IRS still requires that you pay taxes on those prizes.

richardyello
January 13th, 2006, 7:04am
ITEMIZE- Save all your receipts for everything! My car winning is gonna kill me this year. I'm going to a CPA.

meek1643
January 15th, 2006, 9:15am
????

Re: Social Security Disability Benefits

I can't file a income tax return unless my income amounts to $25,000 or more for the year. I have no other combined income at this time. This is stated in the IRS guidelines and confirmed by my accountant.

All prizes/wins are considered "other income" on your tax return.

All prizes/wins are supposed to be reported as other income no matter how big or small the prize is and no matter if a 1099 was submitted or not (yes, that even means a $1.00 prize).

Some are under the impression that since a sponsor doesn't have to submit a 1099 on a prize unless it's $600+, you don't have to pay taxes on it. That's wrong. Some sponsors still do submit a 1099 on smaller prizes; but even if they don't, the IRS still requires that you pay taxes on those prizes.

Am not on SSDI. Thanks I am on a private disability program and my amount is well over 25,000. So I will report it on my income tax. Better safe than sorry. Thanks.

wackydackydoo
January 15th, 2006, 12:30pm
According to the IRS (whose guidelines you follow) and my accountant, all prizes are considered "other income" that must be reported on your tax return.

Social Security personnel are not the ones to be inquiring about tax information.

If my winnings plus my social security disability benefits put me over $25,000, I have to file a tax return.

meek1643
January 15th, 2006, 12:40pm
Insurance is very high, I have to file along with my husbands income we have had to pay every year. So I will just include winnings and then deduct the costs.

pestkaj
January 15th, 2006, 1:02pm
I'm on SSDI, but still social security, if you win a prize of significant value, it can make all of your social security income taxable. That is significant in the sceme of things. Just something to keep in mind. I just married the love of my life in September of 2005 and my income or at least a portion will now become taxable because it combines with my husband's. :worry:


SSD is NOT impacted by wins at all...I have had a few and was told by the SS office that I could "win a million dollars" and it wouldn't make me taxable, at least not on the SSD portion of things. Any prize over 500 is, of course, taxable.

mincognita
January 15th, 2006, 1:09pm
bdc63,

Any sweep wins your father has to include as income on his tax return will not reduce his SS benefits, since it is not considered earned income.

However, if his wins are significant enough to push his gross income beyond certain thresholds ($25,000 for a single taxpayer, $32,000 for a married taxpayer) it could trigger the taxability of his SS benefits.

SillyLilly
January 15th, 2006, 1:19pm
bdc63,

Any sweep wins your father has to include as income on his tax return will not reduce his SS benefits, since it is not considered earned income.

However, if his wins are significant enough to push his gross income beyond certain thresholds ($25,000 for a single taxpayer, $32,000 for a married taxpayer) it could trigger the taxability of his SS benefits.

I asked an accountant, and that's exactly what they said. The IRS has a worksheet to help you figure it, I think you take half your SS/SSD income and add "other" income and if the total is higher than the thresholds it triggers tax on all or part of the SS/SSD.

They also said if you're SS or SSD, if "other" income is more than $8200 you're required to file a return.

mincognita
January 15th, 2006, 2:12pm
Thanks, SillyLilly, for confiming what I've said. (I've been in the tax field since 1986, and established my own practice in 1992.)

With that being said.... I hope that anyone with a tax question will seek out a local professional for advice, rather than looking to Internet forums to find answers.

There's a lot of misinformation in this thread. I'd hate to think that anyone would accept it as fact without doing their own research.

SillyLilly
January 15th, 2006, 3:00pm
There's a lot of misinformation in this thread. I'd hate to think that anyone would accept it as fact without doing their own research.

Yep, that's the only reason I posted to the thread. I'd hate for people to start getting audited and fined because they didn't file when they needed to.

mjlj8
January 15th, 2006, 3:17pm
:cool2: i get it because my spouse is over 65 and i stay home with our son and your winnings are not counted as income

may be diffrent for ssdi