Q: Does your tax book address the Medicare and Social Security implications of gambling income? I am approaching Medicare age and just recently became aware of the effects of gambling income on Medicare premiums. I believe there are some Social Security implications as well.
A: I don’t discuss this subject at length because so much depends on your total income. If you have high non-gambling income, adding gambling income to your AGI can become very expensive. I write: “Seniors may find that they have to pay taxes on more of their SS income.” There can be higher Medicare payments also. I give a whole long list of other negative effects for recreational gamblers who have to include gross gambling win figures in their adjusted gross income. This is why some who qualify will file as professional gamblers on a Schedule C. There is a whole section on the “1040 Line Problem.” As I say so often, when your financial situation becomes more complex, you probably will need to see a professional tax preparer who is knowledgeable about tax issues connected with gambling. And many times the taxpayer will need to tell them about Tax Help for Gamblers!
Q: I have your 2nd edition 2012 paperback of Tax Help for Gamblers. I see your updated 2015 edition is only available online. Do I really need to buy that?
A: That depends. The 2012 edition covers the basic well, but there have been quite a few changes in the last three years. Here is a list of some of the subjects that are new and/or have been updated in this 3rd edition and you can see whether any of these might affect your personal tax preparation:
- Current online legality issues, including state-approved online casinos
- Fantasy sports play
- A new court case that allows a professional gambler to deduct business expenses in excess of wins
- New ability to request tax documents (like W-2Gs and 1099s) online
- Stricter rules for casinos to track sources of gamblers’ money and new pressure on overseas financial institutions to reveal records of US citizens
- Numerous changes in reporting state income taxes – we revised the listing of 8 states
- Updated sample federal forms to 2014 version
- And the most exciting news – court cases support the “session” method of reporting gambling income
You can order the online 3rd edition directly from Amazon Kindle, Nook, or iTunes.
If you want to get more details about this book here is the Table of Contents and a sample chapter from the 2nd edition. (You might need to scroll down before they appear.)
I went to Amazon to see what the ebook price is and and I SPECIFICALLY clicked on the 3rd edition. Way too many sellers have listed their old copies (physical) in the listing of the THIRD edition. I notified Amazon but I did want you to know.