Q. Im retired and live on Social Security. I hit a small jackpot of $1,205 on a $1 bet. Do I have to remit income to the IRS even if Im still below the taxing limit?<\/p>\n
Lucky<\/p>\n
A. Congratulations on your gambling winnings.<\/p>\n
Whether you will owe taxes to the IRS depends on whether you are required to file a tax return in 2021.<\/p>\n
Assuming you are single, you need to file a tax return this year if your gross income is more than $12,400, or $14,040 if over age 65, said Gail Rosen, a Martinsville-based certified public accountant.<\/p>\n
Social Security does not count as taxable income, she said, so based on the income you stated, it appears no taxes will be due on your winnings.<\/p>\n
Under your scenario, you will not be required to file a tax return for 2021, although you may want to consider filing if you did not receive your $1,400 Recovery Rebate Credit in 2021, she said. Filing a 2021 tax return allows you to receive the Recovery Rebate Credit that you deserve.<\/p>\n
Email your questions to Ask@NJMoneyHelp.com<\/a>.<\/p>\n Karin Price Mueller writes the Bamboozled column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Sign up for NJMoneyHelp.coms weekly e-newsletter.<\/p>\n <\/p>\n Excerpt from: <\/p>\n