15 Dec I gamble. What will happen to my benefit program?

Q. I have a gambling problem and I’m afraid I could lose my SSI benefits. I have hundreds of thousand in winnings, but I almost always put it back, not knowing to
walk away. My income changes every day, week or when I gamble and I almost end
up with losing it all. I am afraid that when Social Security sees that extreme high income, they won’t pay me anymore. What should I do?
— Player

A. First, and we’re not judging here, but it does indeed sound like you have a problem.

New Jersey provides funding for education and treatment programs for people with a gambling problem.

If you need help, you can contact the Council on Compulsive Gambling of New Jersey or visit the National Center for Responsible Gaming.

Turning to the money side of this issue.

Gambling winnings are reported on Schedule #1 on your federal income tax return, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.

Gambling losses are deductible as an itemized deduction on Schedule A, subject to the 2% of income limit, he said.

“The amount of losses cannot exceed your gambling winnings,” he said.

So you said you receive, SSI, which is the acronym for Supplemental Security Income.

“SSI is a needs-based government assistance program administered by the U.S. Social Security Administration that offers monthly payments to eligible U.S. citizens,” Kiely said. “These include people with disabilities of all kinds and people aged 65 and older whose income and assets fall below a certain threshold.”

There are asset and income limits in order to be eligible for SSI, he said.

“So in your case, it is possible you could lose your SSI benefits because of your gambling winnings,” he said.

It sounds like you should speak to a tax professional who is familiar with SSI rules to see what can be done.

Email your questions to .

This story was originally published on Dec. 15, 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.