Ask Larry

Will I Lose My Disability Because Of My Gambling Winnings?

I was just award social security disability, i received a 1099k from paypal. Gambling winnings. I haven’t had an income since 2016 until i got this 1099k. Will i lose my disability?

Hi. Probably not. The only way that gambling winnings could affect your eligibility for Social Security disability (SSDI) benefits is if you're considered to be a professional gambler who's required to pay self-employment taxes on your winnings.

However, if you've been awarded Supplemental Security Income (SSI), then any type of income could adversely affect the amount of SSI benefits that you could be paid. SSI is a needs based program administered by Social Security, but it isn't funded by Social Security taxes. Only people who have little or no income or assets can qualify for SSI payments.

Best, Jerry

Mar 1 2023 - 1:12pm
MaxiFi software running on a laptop
Get What's Yours!
Discover tens of thousands in extra retirement dollars with Maximize My Social Security software!
  • Find your maximized strategy
  • Unlimited what-ifs
  • Step-by-Step filing instructions
  • Our software's lifetime-benefit increase for an illustrative couple earning $65K each and planning to take retirement benefits at 62.

    Results will differ based on your specific case and filing strategy.

Getting Started is Easy
Web-based software. Works on ALL browsers. No download.