Q: I'm on SSI and I could win a lot of money at a casino, but what happens next?
Me and my family are going to the casino soon for a drawing. I have a chance to win $25,000. I know I have to pay taxes on it and claim it to SSA, but my family wants to split any money we get. So that means even though i am claiming $25,000 I am actually getting substantially less. I know that SSA either lowers or cuts off your SSI until they believe you have spent that money. What do I do? I am claiming that much money because I won the drawing, but I'm not receiving that amount since I'm splitting it. Is there a solution that doesn't have me paying on $25,000 when i may only receive from my family $7,000?
A:
If you win $25,000 at the casino, you must report the entire amount to the Social Security Administration (SSA) as income. The fact that you are splitting the money with your family does not change the fact that you received the full amount.
When you report the winnings to the SSA, they will take into consideration the amount that you received from your family. However, it is important to note that the SSA may still reduce or suspend your SSI benefits based on the total amount of the winnings.
One potential solution is to set up a special needs trust to hold the money. A special needs trust is designed to help people with disabilities maintain their eligibility for government benefits while also allowing them to receive money from other sources. If you set up a special needs trust and deposit the winnings into the trust, the money will not be counted as income for SSI purposes. However, it is important to speak with a qualified attorney who specializes in special needs trusts to determine if this is the right option for you.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
