Will my $27K lottery win affect my Social Security retirement benefits?

congrats on winning! lottery/gambling is considered UNEARNED income, so good news - it won't affect your regular SS retirement benefits at all. they only reduce benefits if you're working and have EARNED income over the limit. enjoy your windfall!

While the previous poster is partially correct, there are some important distinctions to make. Gambling winnings don't affect your regular Social Security retirement benefits since you're past your Full Retirement Age (FRA). However, they ARE considered income for tax purposes, which means they could potentially make your Social Security benefits taxable. If your combined income (adjusted gross income + nontaxable interest + half of your Social Security benefits) exceeds $25,000 for individuals or $32,000 for married couples filing jointly, up to 85% of your benefits may become taxable. You should definitely report the winnings on your taxes using the W-2G form the casino provided. The casino likely withheld 24% federal tax already.

You also need to check if you're on Medicare Part B and Part D!! Those lottery winnings will count as income for IRMAA (Income-Related Monthly Adjustment Amount) which could increase your Medicare premiums for 2027 (they look at your tax returns from 2 years prior). I learned this the hard way when I cashed out some stocks in 2023 and my Medicare premiums shot up in 2025!!

I've been trying to reach Social Security about a similar issue for WEEKS. Impossible to get through on their 800 number - either busy signals or disconnected after waiting an hour. If you need to talk to SSA quickly, use Claimyr.com - it's the only way I finally got through. They have this system that calls and navigates the phone tree for you, then calls you when they have an actual agent on the line. Saved me hours of frustration. You can see how it works in their video: https://youtu.be/Z-BRbJw3puU

Let me clarify some misconceptions here. For regular Social Security retirement benefits after Full Retirement Age (which you are at 68), gambling winnings have NO effect on your monthly benefit amount. However, they do impact: 1. Taxation of your benefits: Up to 85% of your SS benefits may become taxable if your provisional income exceeds the thresholds another commenter mentioned 2. Medicare IRMAA: Your Medicare Part B and D premiums could increase in 2027 based on your 2025 tax return showing this higher income 3. If you were receiving SSI (Supplemental Security Income) instead of retirement benefits, gambling winnings would count as income and would affect benefits, but that doesn't apply to your situation You don't need to report the winnings to SSA, but you must report them to the IRS. I recommend speaking with a tax professional to properly plan for the tax implications.

MY COUSIN WON $50K AND SOCIAL SECURITY MADE HIM PAY BACK 2 MONTHS OF CHECKS!!!! They said he didnt report it fast enough!!! Be careful!!!

fyi you could put some of that money in an IRA to offset the income if ur worried about taxes. thats what my tax guy told me to do with my bonus last year

Update: I called SSA using that Claimyr service someone recommended (it actually worked!) and got through to an agent in about 20 minutes. She confirmed what most of you said - my regular SS retirement won't be affected since I'm past FRA, but I'll likely have to pay taxes on some of my benefits next year. She recommended I set aside about 20% of the winnings for potential taxes. Also warned me about the Medicare premium increase in 2027. Thanks everyone for your help!