Do I owe taxes on my gambling jackpot? – NJ.com

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?

Lucky

A. Congratulations on your gambling winnings.

Whether you will owe taxes to the IRS depends on whether you are required to file a tax return in 2021.

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.

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.

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.

Email your questions to Ask@NJMoneyHelp.com.

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.

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Do I owe taxes on my gambling jackpot? - NJ.com