17 Apr My son is on SSI and won a jackpot. Does he have to file taxes?

Q. My son is on SSI and won a $2,000 jackpot. Do I have to file a tax return for him?
— Trying to help

A. Congratulations to your son.

Before getting to the tax return, it’s important to know that his winnings are important for the future of his benefits.

SSI is needs-based, so it could potentially reduce or eliminate his monthly income, said Jody D’Agostini, a certified financial planner with Equitable Advisors/The Falcon Financial Group in Morristown.

“The total resource limit that he could own would be $2,000, so it depends upon what he already has,” she said.

Importantly, the IRS monitors these winnings, she said.

If this was won at a casino, they could withhold taxes and report it to the IRS as well, she said.

“Assuming that this is his only source of income, he would not need to file taxes as income for single filers of $10,000 or less would pay no taxes either federally or to the state of New Jersey,” D’Agostini said.

But if taxes were withheld, he should speak to a tax preparer to see if he could be due a refund based on his overall income.

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This story was originally published on April 17, 2023.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.