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?
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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.
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