Probably the most common effects are the loss of medical deductions and
casualty losses on Schedule A due to rise in AGI and the eligibility losses
on things like the Roth IRA because your AGI rose too high -- compared to a
normal work situation where, given the same net income, you would qualify
for the Roth without penalty because you don't have a bunch of W2s that kick
you over the limit.
As for younger people, the W2gs/1099s are an issue in that most of them are
taking the standard deduction. In order to claim losses they need to file
a schedule A which negates some/most of the benefits of the standard
deduction. If they don't get a lot of W2Gs, it might be better to just eat them &
stay with the standard deduction. In a way this is also a caution for the
occasional gambler using the standard deduction -- YOU COULD LOSE or BE A
SMALL WINNER & NOT BE ABLE TO CLAIM ANY LOSSES because losing the standard
deduction could be worse than not claiming the losses.
In a message dated 1/24/2012 7:24:21 A.M. Pacific Standard Time,
vpFREE@yahoogroups.com writes:
_Re: FSP strategy ideas _
(http://groups.yahoo.com/group/vpFREE/message/119024;_ylc=X3oDMTJzNm9nM25yBF9TAzk3MzU5NzE1BGdycElkAzQ2NDEwMTcEZ3Jwc3BJZAMxNzA1
MDY1NzMyBG1zZ0lkAzExOTAyNARzZWMDZG1zZwRzbGsDdm1zZwRzdGltZQMxMzI3NDE4NjU2)
Posted by: "vp_wiz" _harry.porter@verizon.net _
(mailto:harry.porter@verizon.net?Subject= Re:%20FSP%20strategy%20ideas) _vp_wiz _
(http://profiles.yahoo.com/vp_wiz)
Mon Jan 23, 2012 10:17 am (PST)
the7thwarrior wrote:
>
> When those w-2g's start effecting your Social Security income they no
longer represent real profit. If your AGI is too high you start losing
benefits. This is usually only the case for those collecting those benefits.
Otherwise it only effects your deductions on Schedule A.
> Sure you get to write off gambling losses against winnings, so for
> the younger crowd it is not an issue.
[Non-text portions of this message have been removed]
