2015-01-15
I have been gambling for years, usually posting a loss or small win for the year. I retired this year and what a difference to the calculations! Now re Modified Adjusted Gross Income (MAGI), I have to include the total amount of wins as income on the first page of the IRS form, which raises the AGI, even though I was a loser for the year - I don’t get to subtract the loss. I have spoken with a CPA and she states that yes, it’s true. This grossly inflates our AGI and increases our tax rate. Would love to hear Jean Scott’s take on this.