SNAP: Income – Gaming Income

The following FAQS are regarding income that is obtained through gaming. Examples would include casino winnings, Bingo, etc.

Ms. Smith is receiving SNAP and has reported she won $1,500 playing Bingo last night. How is this considered? How do we verify this?
When questioned, the client states that she is not a regular gambler and does not plan to gamble again anytime soon. This would be considered a non-recurring lump sum payment, so it is not countable income.
Ms. Jones reports she is an avid Bingo player, who plays at least once a week. She reports her winnings each time. She consistently wins, reporting winnings at least once a month. How is this handled? How do we verify this?
This would be considered unearned income and averaged over the total months received. To verify this, you may just need to take her word for the amount she has won. Gaming establishments are required to keep records of one time winnings of $1,200 or more and report these amounts to the IRS. If the individual winnings were less than this, although over the course of the night she might exceed the $1,200 amount, the facility would not be able to verify this.
Mr. Brown goes to the local Tribal casino every payday. He reports he only wins about once every 3 months and winnings are between $50 and $150 each time. How is this income considered? How do we verify this?

Since the amount is in excess of $30 per quarter, this must be counted as unearned income and averaged over the total months received. To verify this, you would take his word, as there is not a requirement of the facility to keep records of payouts less than $1,200 at one time.
Are losses allowed for gambling winnings or are the gross winnings considered?
The federal interpretation stated gross gambling winning is always considered. Losses are not deducted from gross winnings. It is the position of the Food and Nutrition Services (FNS) that all gambling winnings are unearned income. Since gambling winnings are considered unearned income, the winnings cannot be considered self-employment. Therefore no deductions or offsetting of losses against the winnings can be allowed for gambling winnings.

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