Will casino jackpot winnings affect my Social Security widow benefits?
I've been receiving Social Security widow benefits since my husband passed away 3 years ago. I'm 63 now and not planning to claim my own retirement benefits until I reach my FRA. Here's my situation - I hit a $32,000 jackpot at the casino last weekend (still can't believe it!!) and now I'm worried about how this might affect my widow benefits. Do lottery/gambling winnings count as income for Social Security purposes? Will SSA reduce my monthly payments or do I need to report this? I know that working income can reduce benefits, but what about a one-time windfall like this? Thank you for any help!
14 comments
Join the conversation
Zainab Ahmed
congrats on the win!! i think gambling winnings r taxable but not sure if SSA counts it as income for benefits. probably depends if ur under FRA?
0 coins
Miguel Diaz
•Thanks! Yes, I'm definitely under FRA - I'm 63 and won't reach full retirement age for another 3 years. So that's exactly what I'm worried about.
0 coins
Connor Gallagher
Good news - gambling winnings do NOT count against the Social Security earnings test. The earnings limit only applies to wages from employment or net earnings from self-employment. Your jackpot is considered unearned income, so it won't reduce your widow benefits. However, gambling winnings are still taxable income to the IRS. You'll receive a W-2G form if the casino withheld taxes. This could potentially increase your overall income and make a portion of your Social Security benefits taxable, but it won't trigger a direct reduction in your monthly benefit amount.
0 coins
Miguel Diaz
•Oh thank goodness! That's such a relief to hear. I was really worried they'd reduce my monthly payments or that I'd have to pay some back. I'll definitely set aside money for taxes.
0 coins
AstroAlpha
I won $15,000 at bingo last year when I was collecting my husband's survivor benefits and it didn't affect my monthly check AT ALL. But yeah the IRS still took their cut lol. Enjoy your winnings!!
0 coins
Yara Khoury
The previous posters are correct that gambling winnings don't count toward the earnings test for Social Security. However, I want to add that if your adjusted gross income (including your gambling winnings) exceeds certain thresholds, up to 85% of your Social Security benefits could become taxable on your federal return. For 2025, this happens if your combined income (AGI + half of SS benefits + nontaxable interest) exceeds $25,000 for single filers or $32,000 for joint filers. You might want to consult a tax professional to understand the full implications.
0 coins
Miguel Diaz
•Thank you for that additional information. I didn't even think about how it might affect the taxation of my benefits. I'll definitely talk to my tax preparer about this.
0 coins
Keisha Taylor
MY SISTER HAD THIS HAPPEN!!! Except it was a smaller amount, like $8k I think. She called the SSA office to ask and they said gambling doesn't count for the earnings test. But she was on hold FOREVER trying to get through to someone who actually knew the answer!!! They kept transferring her around!!
0 coins
Paolo Longo
•I had similar issues reaching SSA when I needed to update my bank info. After multiple disconnects and hours on hold, I found a service called Claimyr that helped me get through to an agent in under 10 minutes. It was worth it for me - check out their demo at https://youtu.be/Z-BRbJw3puU or visit claimyr.com if you need to speak with SSA about complex situations. Much better than waiting on hold for hours only to get disconnected.
0 coins
Amina Bah
I'm surprised no one has mentioned that you should consider whether to take your own retirement benefits instead of widow benefits at this point. Depending on your work history, the $32,000 winnings could give you some financial flexibility to optimize your long-term benefits strategy. If your own retirement benefit at FRA would be higher than your current widow benefit, it might make sense to switch. You can always book a free appointment with an SSA claims specialist to explore your options.
0 coins
Miguel Diaz
•That's an interesting point I hadn't considered! My own benefit at FRA will be slightly higher than my widow benefit, which is why I was planning to switch at that time. Maybe I should talk to someone at SSA about whether this changes my optimal strategy.
0 coins
Zainab Ahmed
just wondering did u have to fill out a tax form at the casino when u won? i think they give u some kinda form if its over a certain amount
0 coins
Miguel Diaz
•Yes, I had to fill out a W-2G right there at the casino since it was over $1,200. They actually withheld 24% for federal taxes on the spot. I was just worried about the SSA part!
0 coins
Yara Khoury
One more thing to consider - if you're receiving any means-tested benefits besides Social Security (like Medicaid, SNAP, etc.), the gambling winnings could potentially affect those. Social Security widow benefits aren't affected by assets, but some other programs are. Just something to keep in mind if you're enrolled in other assistance programs.
0 coins