Nita,
I have posted several warnings about the impact of W-2Gs on Medicare. There is an appeal process you can try. You do not need an attorney so you can do it yourself. On the first level you will be denied, but an administrative law judge has more leeway and may grant you some relief based on the fact that your AGI is not close to your real income. There is no reason why this policy cannot be changed to offset winnings with losses, but someone will have to challenge the policy.
Chris
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