GuaymasJim Posted January 12, 2016 Share Posted January 12, 2016 In 1995, I won 2nd Prize in Powerball-$100,000. VA disability compensation doesn't come into the picture at all as it is not earned income and is non-taxable under any circumstances. It has absolutely no effect on your disability compensation either VA or SSDI. If you are receiving a pension rather than disability comp, then the pension will go away because it is means tested. When you file federal income tax your lottery winnings AND your SSDI (regular SSA also) are both taxable. In future years, any interest your earn on the lottery winnings AND SSDI/SSA are taxable just like interest on any other funds--but again there is no effect on VA disability comp. If the interest is higher than the pension limits (around $14,500 annually) then your would no longer pass the means test and would lose the pension. There is a story about a woman Chicago (I think), that won like you did and continued to receive food stamps which is also means tested so she became ineligible for them when she won. In addition to getting some really hateful mail, she had to pay back the food stamps she received after the lottery win. I plan on winning the $1.5 billion Powerball tommorrow and will get back to you about how that turns out when I wake up and recover from the inevitable heart attack. And no Hector you cannot have the new 650 HP Cadillac! Link to comment Share on other sites More sharing options...
Carl the Engineer Posted January 12, 2016 Share Posted January 12, 2016 Save your money, I just bought the winning ticket. Just saying, Hamslice Link to comment Share on other sites More sharing options...
GuaymasJim Posted January 13, 2016 Share Posted January 13, 2016 Too late Ham, I bought the winning ticket before you. Maybe we will have to each take only half. (Sigh) Link to comment Share on other sites More sharing options...
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