What has happened here is far from clear. If you won $20,000, your eligibility for SSI is in jeopardy. You are legally required to report that income to the Social Security Administration (regardless of who else you have told.) If your are charged with welfare fraud for failure to report, jail time is a possible sentence.
This is not a tax question, so the category has been corrected.
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The problem isn't that you won. Winnings are not considered earned income. The problem is that on the first of the month following the win, those winnings are treated as resources. Medicaid/SSI are means tested so you will likely roll off those programs until your winnings are spent down on goods and services for you (not for your friends and family). If you are under age 65 and want to maintain your benefits, you might want to look into opening an account in a d4C pooled trust.
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