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Finding a high-paying job while managing ADHD is definitely achievable, especially with the right career choice that aligns with your strengths and interests. Here are some ideas and tips tailored to your situation:

Jobs That Fit ADHD Strengths

  1. Trades and Apprenticeships:

    • Electrician, plumber, HVAC technician, or welder: These roles require hands-on work and problem-solving, which can be engaging for someone with ADHD.
    • Many trades offer apprenticeships that pay while you learn, and skilled tradespeople can earn $80K+ with experience and certifications.

  2. Sales:

    • Sales positions in industries like real estate, software (SaaS), or medical devices can be lucrative. ADHD traits like energy, quick thinking, and adaptability can be assets.
    • Earnings can skyrocket with commission-based roles as you build your client base.

  3. Tech Roles (Non-Academic Options):

    • Coding bootcamps or self-taught paths can lead to careers in web development, UX/UI design, or data analysis. These fields often value skills over formal education.
    • Many tech jobs pay well into the six figures with experience, especially in cities with strong tech industries.

  4. Entrepreneurship or Freelancing:

    • ADHD can thrive in fast-paced, varied environments. Freelancing in areas like graphic design, copywriting, or consulting lets you set your schedule and focus on your strengths.
    • Success depends on building a niche and consistent client base.

  5. Creative Fields:

    • Photography, videography, content creation, or digital marketing allow for creativity and less traditional work environments.
    • Experience and a strong portfolio can lead to high earnings.

  6. Healthcare Professions:

    • While it may require more education, roles like nursing, radiology technician, or occupational therapy assistant combine active work with helping others, which can be fulfilling for ADHD individuals.

Steps to Achieve $100K+ by 35

  1. Research Apprenticeships:

    • Check platforms like Apprenticeships.gov or local trade schools.
    • Union apprenticeships often offer higher pay and excellent benefits.

  2. Consider Bootcamps:

    • Look into coding or tech-related bootcamps like General Assembly or Flatiron School. Many offer income share agreements (ISAs) or scholarships.

  3. Certifications Over Degrees:

    • Certifications like AWS Cloud Practitioner, Google IT Support, or Salesforce Administrator are fast to earn and can boost pay significantly.

  4. Leverage ADHD Strengths:

    • ADHD can be an asset in high-energy environments or roles that require multitasking, creativity, and problem-solving.

  5. Network Aggressively:

    • Build connections through LinkedIn, local meetups, or professional groups in your field of interest.

Tips for Success

  • ADHD-Friendly Work Environments: Seek dynamic workplaces that encourage flexibility and allow you to hyperfocus.
  • Break Long Goals into Steps: Create a clear 10-year plan with short-term milestones.
  • Build Soft Skills: Communication and time management are critical for climbing the career ladder.
  • Use Tools for Focus: Apps like Todoist or Notion and ADHD-friendly strategies can help you stay organized and productive.

  1. Default Removal Significance:

    • Defaults have a significant negative impact on credit scores because they indicate a serious delinquency. Removing the default eliminates one of the most damaging marks on your credit report, so your score could see a meaningful increase.
    • The extent of the increase depends on the overall makeup of your credit profile.

  2. Other Factors on Your Credit Report:

    • If you have other negative marks (e.g., late payments, high credit utilization), the score increase might be more modest.
    • If your report is otherwise clean and the default was the main issue, the increase will likely be more significant.

  3. Credit Building After Removal:

    • After the default is removed, consistent on-time payments and responsible credit usage will help your score continue to improve over time.

What to Expect

  • Timing: The creditor mentioned it would take around 120 days for the default to be removed. Keep an eye on your credit report using free tools (like Credit Karma or AnnualCreditReport.com) to confirm when it's updated.
  • Score Impact: It's common to see a 50-150 point increase, but the exact amount varies based on your credit profile and scoring model (FICO or VantageScore).

Steps to Take Moving Forward

  1. Check Your Credit Report Regularly:

    • Ensure the default is removed across all three credit bureaus (Experian, TransUnion, Equifax).

  2. Maintain On-Time Payments:

    • Avoid late payments on your reinstated student loan or any other credit accounts. Payment history is the biggest factor in your credit score (35%).

  3. Diversify Your Credit Mix:

    • If you don’t have much credit history, consider applying for a secured credit card or a credit-builder loan to demonstrate positive payment behavior.

  4. Reduce Credit Utilization:

    • If you have credit cards, keep your balances below 30% of your credit limit to further boost your score.

Key Takeaway

The removal of the default will have a positive impact on your credit score, potentially raising it significantly. Keep practicing good credit habits to build on the improvement and continue boosting your score over time.

  1. Pass the Three Levels of the CFA Exam:

    • These exams focus on a deep understanding of investment management, ethics, financial analysis, portfolio management, and other core finance topics.

  2. Earn the Required Work Experience:

    • You need 4,000 hours of relevant work experience completed in at least 36 months (roughly three years).
    • The work experience must involve decision-making, analysis, or activities related to the investment decision-making process. Examples include:
      • Portfolio management
      • Investment analysis
      • Risk management
      • Financial planning
    • Experience can be accrued before, during, or after the CFA exams, as long as it meets the criteria.

  3. Submit Professional References:

    • You’ll need 2-3 professional references (depending on your local CFA society) who can vouch for your work experience and character.

  4. Become a CFA Institute Member:

    • Apply for membership in the CFA Institute and your local CFA society.
    • Pay annual dues and agree to adhere to the CFA Institute's Code of Ethics and Standards of Professional Conduct.

Can You Call Yourself a CFA Without Work Experience?

No, you cannot use the “CFA” designation until you meet all the requirements, including the work experience. However, you can still list “Passed CFA Level 1/2/3” on your resume.

Since you have a background in Finance and Accounting, some roles may count toward the work experience requirement if they involve:

  • Evaluating financial data for investment decisions.
  • Assessing risks or market opportunities.
  • Researching securities or creating financial models.

If your current work experience doesn’t qualify, consider internships, entry-level analyst roles, or other positions closely tied to the investment process.

Next Steps

  1. Focus on passing CFA Level 1 and explore potential career paths in investment or finance to gain relevant work experience.

  2. If you're unsure whether a job qualifies, the CFA Institute provides a self-assessment tool when applying for membership. You can also contact them for clarification.

1. Transitioning to Retirement

  • Emotional Adjustment:
    • Leaving a long-term corporate career can feel liberating but also unsettling. Many retirees report a “honeymoon phase” followed by a period of adjustment as they redefine purpose and structure.
    • It’s normal to feel a mix of excitement and loss. Give yourself grace and time to explore what this next chapter looks like for you.
  • Staying Active and Healthy:
    • Part-time work can be an excellent way to maintain routine, social connections, and a sense of purpose.
    • Consider roles that align with your interests or passions, like consulting in your field, mentoring, or volunteering.
  • Financial Peace of Mind:
    • Even a modest part-time income can supplement retirement savings and allow for extra discretionary spending.

2. Part-Time Work Ideas

  • Industry Consulting or Freelancing:
    • Leverage your decades of experience in sales. Businesses often value the insights of seasoned professionals for short-term projects or training programs.
  • Teaching or Mentoring:
    • Look into adjunct teaching roles at local colleges or mentorship programs for aspiring professionals.
  • Pursue Hobbies or Passions:
    • If you have interests outside your corporate career (e.g., woodworking, gardening, writing), turn them into small business ventures or community involvement.
  • Low-Stress Jobs for Fun:
    • Many retirees enjoy jobs with social interaction, such as working at a golf course, library, or museum.
  • Volunteering:
    • If income isn’t a concern, volunteering can keep you engaged while giving back to the community.

3. Giving Notice at Work

  • Timing the Announcement:
    • The standard is 2-4 weeks' notice, but for long-time employees, a heads-up of 1-2 months is often appreciated.
    • Ensure your transition plan is in place to leave on good terms, such as training a replacement or documenting key responsibilities.
  • Be Transparent and Positive:
    • Frame your retirement as a personal milestone and focus on the positives—thanking the company for opportunities and expressing excitement for the future.
  • Expect Mixed Reactions:
    • Long-term colleagues may be happy for you but also feel the loss of your presence. Be prepared for some bittersweet moments.

4. Planning with a Younger Spouse

  • Align Retirement Timelines:
    • With your spouse planning to work for a few more years, discuss how your schedules might align (e.g., spending evenings/weekends together or taking short trips when she has time off).
  • Health Insurance Considerations:
    • With Medicare in place for you, ensure your spouse has coverage through her job or a marketplace plan if needed.
  • Shared Goals for the Future:
    • Use this time to plan what your joint retirement will look like when she’s ready—travel, downsizing, or relocating.

5. Lifestyle and Social Connection

  • Build a Routine:
    • Create a daily or weekly structure that balances leisure, productivity, and social interaction.
    • Join local clubs, fitness groups, or hobby communities to stay socially active.
  • Plan Travel and Experiences:
    • With fewer time constraints, this might be the perfect time to take advantage of midweek travel or bucket-list experiences.

6. Initial Feelings Post-Retirement

  • The Good:
    • Freedom from corporate schedules and stress can feel amazing. You’ll likely enjoy the flexibility to focus on your health, relationships, and interests.
  • The Challenging:
    • Some retirees feel a loss of identity tied to their career. Filling this void with meaningful activities is key.
    • The shift in daily interaction with colleagues may feel isolating initially, so prioritize building new social connections.

Closing Advice

  • Reflect on what brings you joy and purpose—your next steps don’t have to be “productive” in the traditional sense but should enrich your life.
  • Stay curious and open to new experiences. Retirement is the start of a new chapter, not the end of one.
  • Check in with your wife regularly to ensure your individual goals remain aligned as you both transition into retirement together.

1. Maximize Tax-Advantaged Accounts

  • 401(k) or Employer-Sponsored Retirement Plan:
    • Contribute enough to get the full employer match (free money!).
    • Consider increasing contributions over time to aim for 15-20% of your income.
    • Use low-cost index funds like S&P 500 funds (e.g., VFIAX or SWPPX) or target-date funds for automatic diversification.
  • Roth IRA or Traditional IRA:
    • Contribute the maximum ($6,500/year for 2024, or $7,500 if over 50).
    • Roth IRA is excellent for long-term growth due to tax-free withdrawals in retirement.
    • Invest in broadly diversified funds like VTSAX (total stock market index fund) or VT (global total market ETF).
  • Health Savings Account (HSA) (if eligible):
    • Triple tax advantage: pre-tax contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
    • Invest HSA funds instead of keeping them in cash for maximum growth.

2. Invest in Broad Market Index Funds or ETFs

For wealth creation, index funds and ETFs are among the best options due to their low fees, diversification, and strong long-term performance.

  • Examples:
    • U.S. Market: VTI (Vanguard Total Stock Market ETF), SCHB (Schwab U.S. Broad Market ETF).
    • International Exposure: VXUS (Vanguard Total International Stock ETF).
    • Dividend Focus: SCHD (Schwab U.S. Dividend Equity ETF) for a combination of growth and income.
    • Global Diversification: VT (Vanguard Total World Stock ETF).

3. Automate and Dollar-Cost Average (DCA)

  • Set up automatic contributions to your investment accounts.
  • Consistently invest the same amount each paycheck, regardless of market conditions.
  • DCA reduces the impact of market volatility and ensures you're always invested.

4. Diversify with Alternative Assets

While equities should form the core of your portfolio, diversifying into alternative assets can provide additional growth and protection against downturns:

  • Real Estate:
    • Invest in physical rental properties or REITs (Real Estate Investment Trusts) for passive income and appreciation.
    • Example REITs: VNQ (Vanguard Real Estate ETF).
  • Bonds:
    • Add bonds as you near retirement to reduce portfolio volatility.
    • Start small (10-20% in bonds) if you're younger.
  • Other Alternatives:
    • Consider assets like gold, commodities, or private equity if you're more advanced, but keep these to a small percentage.

5. Focus on Low Fees

  • Investment fees (expense ratios) eat into long-term gains.
    • Stick with low-cost funds like Vanguard, Fidelity, or Schwab offerings (expense ratios under 0.10%).

6. Reinvest Dividends

  • Choose funds or stocks that pay dividends and reinvest them for compounding growth.
  • Over 30+ years, dividend reinvestment can significantly boost your portfolio’s value.

7. Take Advantage of Pay Raises

  • Every time you get a raise, increase your investment contributions by at least 1-2%.
  • Avoid lifestyle inflation by keeping expenses stable and channeling extra income into investments.

8. Maintain an Emergency Fund

  • Keep 3-6 months of living expenses in a high-yield savings account (HYSA).
  • This ensures you won't have to sell investments during a downturn to cover unexpected costs.

9. Stay Consistent and Avoid Market Timing

  • Resist the urge to time the market.
  • Stick to your plan, especially during market downturns. Historically, markets recover and reward long-term investors.

Sample Portfolio Allocation for a 30-Year Horizon

80-100% Equities (depending on risk tolerance)

  • 60% U.S. Stocks (e.g., VTI, SCHB, SWPPX)
  • 20% International Stocks (e.g., VXUS, IXUS)
  • 10-20% Other (REITs, small-cap funds, etc.)

0-20% Bonds/Fixed Income

  • Start with 0-10% if young and gradually increase as retirement nears.

10. Bonus: Invest in Yourself

  • Education and skill-building can lead to higher earning potential, which fuels more investment opportunities.

Long-Term Potential

If you invest consistently (e.g., $1,000/month) and achieve an average annual return of 8%, here’s what your portfolio could look like:

  • 10 Years: ~$183,000
  • 20 Years: ~$593,000
  • 30 Years: ~$1,489,000

Option 1: Pay Down the Mortgage

Benefits:

  1. Guaranteed Return

    • Paying down your mortgage is like earning a 6% return, risk-free (your interest rate).
    • This is especially appealing if you have a low risk tolerance or if the stock market seems uncertain.

  2. Lower Monthly Payments

    • Your monthly mortgage payment could decrease (if your lender recalculates), freeing up cash flow.

  3. Peace of Mind

    • Reducing debt can lower financial stress and provide a sense of security.

  4. Interest Savings

    • Paying $100k upfront could save tens of thousands in interest over the life of the loan.

Option 2: Invest the $100k

Benefits:

  1. Potentially Higher Returns

    • Historically, the stock market (e.g., S&P 500) averages 7-10% annual returns over the long term, outpacing your 6% mortgage rate.

  2. Liquidity

    • Money in the market is accessible if you need it. Once you pay the mortgage, that money is tied up in your home and harder to access without refinancing or selling.

  3. Tax Advantages

    • If you invest in a tax-advantaged account (like a Roth IRA) or tax-efficient ETFs, your investment can grow tax-free or tax-deferred.
    • Mortgage interest is still deductible if you itemize, softening the cost of the loan.

Factors to Consider

  1. Do You Have Other High-Interest Debt?

    • Pay off higher-interest debt (credit cards, personal loans) first.

  2. Do You Have an Emergency Fund?

    • Ensure you have 3-6 months of expenses in a liquid savings account before tying up funds in a mortgage or investments.

  3. Risk Tolerance and Investment Horizon

    • If you’re comfortable with market volatility and have a long investment horizon (10+ years), investing might make more sense.
    • If you prefer certainty, reducing your mortgage might be better.

  4. Cash Flow Needs

    • Lowering your mortgage balance could improve monthly cash flow, reducing financial strain.

  5. Blended Approach

    • Consider splitting the $100k: put $50k toward the mortgage and invest $50k. This reduces debt while still giving you market exposure.

Simple Math Example

  • Mortgage: $350,000 at 6%, 30-year fixed-rate.
    • Monthly payment (before): ~$2,100.
    • Monthly payment after $100k lump sum: ~$1,500.
  • Investing: Assume an average annual return of 8%.
    • $100k invested for 30 years = ~$1,000,000 (compounding).
    • This far exceeds the ~$115,000 saved in interest by paying down the mortgage.

Verdict

  • Pay Down Mortgage: If you value a guaranteed return, want lower monthly payments, or prioritize debt freedom.
  • Invest: If you’re comfortable with risk, want long-term growth, and can handle market fluctuations.

Splitting the amount (e.g., $50k mortgage, $50k investments) might balance the benefits of both options.

Step 1: Assess and Tackle Current Financial Standing

  1. Track Expenses

    • Use tools like Mint, YNAB (You Need a Budget), or even a simple spreadsheet to see exactly where your money is going.
    • Categorize your spending (needs, wants, savings, debt payments).

  2. Set a Baseline Emergency Fund

    • Aim for $1,000-$2,000 to start (if you don’t have it already).
    • Once you’ve stabilized, grow it to 3-6 months of expenses.

  3. Pay Down Debt Strategically

    • Focus on high-interest debts (credit cards, personal loans).
    • Use the Debt Snowball (smallest balance first) or Debt Avalanche (highest interest rate first) method.

Step 2: Create a Budget You Can Stick To

  • Use the 50/30/20 Rule as a starting point:
    • 50% Needs (rent, utilities, groceries, transportation).
    • 30% Wants (dining out, entertainment, subscriptions).
    • 20% Savings/Debt Repayment (higher if you can!).
  • Automate Savings: Set up an automatic transfer to savings right after your paycheck hits. Start with 10-20% and increase as your income grows.

Step 3: Choose the Right HYSA and Savings Strategy

  1. High-Yield Savings Account (HYSA)

    • Look for 4%+ APY, no fees, and easy access.
    • Popular options: Ally Bank, Marcus by Goldman Sachs, Capital One 360, or Sofi.

  2. Savings Allocation Strategy

    • Emergency Fund: $1,000 → 3-6 months of expenses.
    • Short-Term Goals: (e.g., moving out, vacation, big purchases).
    • Investing: Use a Roth IRA for long-term goals (retirement).

Step 4: Build Toward Financial Independence

  1. Invest for the Long Term

    • Contribute to your employer’s 401(k) (enough to get the match, if offered).
    • Open a Roth IRA and contribute as much as you can (2024 limit: $6,500).
    • Start with broad market index funds like VTSAX, SWPPX, or ETFs like VOO or SPY.

  2. Boost Income

    • Finish your master’s and leverage it to land higher-paying roles in IT management or cybersecurity.
    • Explore certifications like AWS, Azure, or CompTIA Security+ for added credentials.

  3. Control Lifestyle Inflation

    • When your income increases, resist the urge to inflate your lifestyle. Increase savings and investments first, then allocate some for “fun.”

Step 5: Track Progress and Stay Motivated

  • Use visual trackers (charts, apps) to monitor your debt reduction and savings goals.
  • Set milestones (e.g., $5k saved, paying off a specific debt) and reward yourself when you hit them.
  • Engage with personal finance communities (like r/personalfinance) for advice and motivation.

Example Plan for 2024 (Based on $61k Gross Income)

Assume $4,200 monthly take-home:

  • $2,100 (50%): Rent, bills, groceries, transport.
  • $1,050 (25%): Debt payments (focus on high-interest first).
  • $630 (15%): Savings (emergency fund or HYSA).
  • $420 (10%): Fun money (dining out, hobbies).

Safe Alternatives to Bonds

  1. High-Yield Savings Accounts or CDs

    • Why? These accounts are FDIC-insured, offer returns close to or slightly above bond yields (currently around 4-5%), and maintain full liquidity.
    • Best for: Short-term stability while avoiding market volatility.

  2. Treasury Inflation-Protected Securities (TIPS)

    • Why? TIPS are government-backed bonds that adjust their principal for inflation, protecting against the eroding effects of inflation during economic downturns.
    • Best for: Safeguarding purchasing power with low risk.

  3. Gold and Precious Metals

    • Why? Historically, gold has performed well during market crashes as a safe-haven asset.
    • Best for: Diversifying against currency devaluation and market volatility.
    • How? ETFs like GLD or physical gold can be good options.

  4. Real Estate Investment Trusts (REITs)

    • Why? REITs offer exposure to real estate without directly owning property. Some REITs focus on defensive sectors like healthcare or industrial real estate, which tend to be more stable during downturns.
    • Best for: Generating income while diversifying your portfolio.

  5. Defensive Stocks

    • Why? Companies in sectors like consumer staples, utilities, or healthcare tend to be less affected by economic downturns. Examples: Procter & Gamble (PG), Johnson & Johnson (JNJ).
    • Best for: Maintaining equity exposure with lower volatility.

  6. Dividend Growth Stocks

    • Why? High-quality companies with strong dividend histories can provide income and stability even during market crashes. Look for companies in non-cyclical industries.
    • How? ETFs like VIG (Vanguard Dividend Appreciation) or SCHD (Schwab U.S. Dividend Equity).

  7. Commodities Beyond Gold

    • Why? Commodities like silver, platinum, or agricultural products can act as a hedge against economic instability.
    • How? Invest through ETFs such as DBC (Invesco DB Commodity Index Tracking Fund).

  8. Low-Correlation Alternatives

    • Why? Assets like private equity, hedge funds, or private debt often don’t correlate directly with stock market performance.
    • How? Access through platforms like Fundrise or CrowdStreet for real estate, or through financial advisors for hedge funds.

  9. Cash and Short-Term Instruments

    • Why? Cash is the ultimate hedge during a market crash, and short-term Treasury bills (e.g., 3- to 6-month) currently offer yields similar to bonds.
    • Best for: Liquidity and capital preservation.

Risk Management Strategies

  • Rebalance Your Portfolio: If your equity exposure feels too high, consider reallocating a portion to safer assets.
  • Diversify Across Regions: You’re already exposed to global markets (like China), but consider other emerging markets or less-correlated regions like India or Brazil.
  • Dollar-Cost Averaging: If you suspect a crash is coming, invest gradually to mitigate timing risk.

Final Thoughts

No one can predict market crashes with certainty, so the goal is to build a diversified portfolio that can weather volatility. A mix of cash, defensive assets, and alternatives like gold, REITs, or dividend growth stocks can help stabilize returns during downturns. Keep an eye on your risk tolerance and investment horizon when making adjustments.

Current Allocation

  1. SWPPX (50%)

    • What it is: Schwab S&P 500 Index Fund, tracking 500 of the largest U.S. companies.
    • Why it's good: Provides a strong foundation with broad market exposure and low fees.
    • Long-term perspective: Perfect for steady growth over decades.

  2. SCHG (20%)

    • What it is: Schwab U.S. Large-Cap Growth ETF, focusing on growth-oriented companies like tech stocks.
    • Why it's good: Adds a higher-risk, higher-reward component to your portfolio.
    • Long-term perspective: Growth stocks historically perform well over long periods but can be volatile during downturns.

What’s Missing?

To maximize diversification and enhance long-term growth potential, consider these adjustments:

  1. Add Small-Cap Exposure (5-10%)

    • Funds like IJR (iShares Core S&P Small-Cap ETF) or VB (Vanguard Small-Cap ETF) provide exposure to smaller companies with high growth potential.
    • Why? Small-cap stocks often grow faster than large-cap stocks over the long term, though they carry higher risk.

  2. Add International Exposure (10-20%)

    • Consider a fund like IXUS (iShares Core MSCI Total International Stock ETF) or VEA (Vanguard FTSE Developed Markets ETF).
    • Why? International markets provide diversification and exposure to growth outside the U.S., especially in emerging markets.

  3. Consider Dividend Stocks (Optional)

    • A dividend-focused ETF like SCHD (Schwab U.S. Dividend Equity ETF) can add stability and provide income through reinvested dividends.
    • Why? While you're young and focused on growth, dividends can add some balance and compound over time.

Suggested Allocation for Long-Term Investing

SWPPX: 50% — 45%; For core large-cap U.S. exposure.

SCHG: 20% — 20%; For growth stock exposure.

IJR/VB: 0% — 10%; For small-cap diversification.

IXUS/VEA: 0% — 15%; For international diversification.

SCHD: 0% — 10% (optional); For dividend income.

Why This Split Works

  • Diversification: Exposure to large-cap, small-cap, and international stocks reduces risk and captures growth opportunities.
  • Growth Focus: SWPPX and SCHG anchor your portfolio in large, established companies with solid potential.
  • Risk Mitigation: Adding small-cap and international funds helps offset reliance on U.S. markets.

Other Tips for Long-Term Success

  1. Stay Consistent: Invest regularly, even if it's just $5 or $10 at a time.

  2. Reinvest Dividends: Enable automatic reinvestment for compounded growth.

  3. Learn as You Go: Keep reading about investing to refine your strategy. Books like The Little Book of Common Sense Investing by John Bogle can be helpful.

  4. Keep Fees Low: Stick with low-cost index funds or ETFs to maximize returns.

1. Federal Taxes

Income Details:

  • Job Income: $27,890
  • Gambling Winnings: $10,000
  • Total Income: $37,890

Taxable Income:

  • Standard Deduction (Single for 2024): $14,600 $37,890 – $14,600 = $23,290 (taxable income)

Gambling Losses:

  • Gambling losses can only offset gambling winnings if you itemize deductions. Since you’re likely taking the standard deduction, you cannot deduct gambling losses on the federal level.

Tax Bracket (2024):

  • 10% Bracket: $0–$11,000 → $1,100 tax
  • 12% Bracket: $11,001–$23,290 → $1,471 tax $1,100 + $1,471 = $2,571 federal tax

Premium Tax Credit Adjustment:

  • The Premium Tax Credit (PTC) is based on your Modified Adjusted Gross Income (MAGI), which includes gambling winnings.
  • Since your income is now $37,890, your PTC will be reduced. The exact amount depends on your household size and location, but if the credit was based on $28,000 income, you’ll owe back a portion of the credit. The IRS form 8962 will calculate this.

2. Taxes Already Paid

You’ve already had $3,491 withheld from your paycheck for federal taxes. Subtracting your estimated tax liability: $3,491 – $2,571 = $920 refund (so far).

However, the PTC repayment will likely reduce or eliminate this refund, and you may owe if the repayment is substantial.

3. Connecticut State Taxes

Taxable Income:

  • Connecticut allows gambling losses to offset winnings. If your losses equal $10,000, your gambling income will be reduced to $0 on the state level. $27,890 (job income only) – $15,000 (CT standard deduction) = $12,890 taxable income.

State Tax Bracket:

  • Connecticut’s tax rate is 3% on the first $10,000 and 5% on income above that. $10,000 × 3% = $300 $2,890 × 5% = $144.50 Total CT Tax: $444.50

Summary:

  1. Federal Taxes Owed: Likely $2,571, plus some portion of the PTC repayment.

  2. State Taxes Owed: $444.50

  3. Total: Approximately $3,015.50, but the actual amount depends on how much of the PTC you must repay.

What You Should Do:

  1. Gather Premium Tax Credit Information: Use IRS Form 8962 to determine how much of the credit must be repaid.

  2. Check Gambling Loss Records: Ensure you have records of losses to deduct on the state level.

  3. Consider a Tax Preparer: Given the complexity of the PTC and gambling income, a professional can ensure accuracy and minimize your liability.