And just one point of clarity: the impact isn't limited to age 65. Gambling income impacts the medicare deduction at whatever age you opt into the program.
Unfortunately, we were ignorant of this impact until it was too late. When my husband began to draw benefits at age 62, HIS medicare deduction was set at the maximum, despite zero income. Even though he doesn't gamble at all, we file jointly so my total AGI impacted his benefit costs.
After multiple calls to the SSA, he was told that this was based on the two prior years of our joint income, and they will recalculate this every year. Once we understood the limits, we realized that as long as I am working, he will be paying the maximum for his medicare.
But my lesson learned is that as I get close to retirement, I will need to reduce my play considerably to avoid having both of our medicare payments maxed out.
The original warning was a good one, and I appreciate the reminder!
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Posted by: mcuddington@hotmail.com
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