IRS Form W-2G is used to report gambling winnings and any federal income tax withheld from those winnings. There are different reporting and withholding requirements depending on the type of gambling, the amount of the winnings, and the ratio of winnings to wager.
Form W-2G, Certain Gambling Winnings, is used to report gambling winnings and withholding on those winnings. The requirements differ depending on the type of gambling, the amount of winnings, and the ratio of winnings to wager.
It must be filed with the IRS and a copy must be provided to the winner (both copies B and C).
Both the Form W-2G and Instructions have been converted from an annual revision to continuous use in 2021. These will only be updated as needed.
When is Form W-2G required?
Gambling winnings must be reporting using Form W-2G if:
The winnings (not reduced by the wager) are $1,200 or more from a bingo game or slot machine;
The winnings (reduced by the wager) are $1,500 or more from a keno game;
The winnings (reduced by the wager or buy-in) are more than $5,000 from a poker tournament;
The winnings (except winnings from bingo, slot machines, keno, and poker tournaments) reduced, at the option of the payer, by the wager are:
$600 or more, and
At least 300 times the amount of the wager; or
The winnings are subject to federal income tax withholding (either regular gambling withholding or backup withholding)
Tax-Exempt Organizations
Tax-Exempt Organizations conducting gaming activities may still be required to withhold and report winnings on Form W-2G.
What information is reported on Form W-2G?
There is a variety of information included on Form W-2G, including:
Payer’s Information:
Full Name
Full address
Tax Identification Number (TIN)
Phone number
Winner’s Information:
Full Name
Full address
Winnings Information (Filled out differently depending on the type of wager)
Instructions for completing Form W-2G
Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions
A Form W-2G should be completed for each person whom you pay $600 or more in gambling winnings if the winnings are at least 300 times the wager amount.
Withholding
You must withhold federal income taxes from the winnings if the proceeds (winnings minus the wager) exceed $5,000 and winnings are at least 300 times the wager amount. Regular gambling withholding applies.
Identical Wagers
Identical wagers are bets placed with the same payer that depend on the same event or set of events. In horse racing, dog racing, or jai alai, the wagers must also be in the same parimutuel pool. Their winnings are added together for reporting and withholding purposes.
Wagers in a Single Parimutuel Pool
All wagers represented on a single ticket in a horse, dog, or jai alai parimutuel pool are treated as one wager for calculating withholding and reporting. These wagers may not be identical, but if they appear on one ticket, they must be aggregated to determine the wager amount.
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Box Title
Form W-2G Box Instructions
1
Reportable winnings
Enter payments of $600 or more if the payment is at least 300 times the wager.
2
Date won
Enter the date of the winning event. This isn’t the date the money was paid if it was paid after the date of the race (or game).
3
Type of wager
Enter the type of wager if other than a regular race bet, for example, Daily Double or Big Triple.
4
Federal income tax withheld
Enter any federal income tax withheld, whether regular gambling withholding or backup withholding.
5
Transaction
Not applicable.
6
Race
Enter the race (or game) applicable to the winning ticket.
7
Winnings from identical wagers
Enter the amount of additional winnings from identical wagers.
8
Cashier
Enter the cashier and/or window number making the winning payment.
9
Winner’s TIN
This is required information. Enter the TIN of the person receiving the winnings. For an individual, this will be the social security number (SSN) or individual taxpayer identification number (ITIN). If the winner fails to give you a TIN, backup withholding applies.
10
Window
Not applicable.
11
First identification no.
As verification of the name, address, and TIN of the person receiving the winnings, enter the identification numbers from two forms of identification. Acceptable forms of identification include a driver’s license, passport, social security card, military identification card, tribal member identification card issued by a federally recognized Indian tribe, voter registration card, or completed and unmodified Form W-9. Enter the number and the state or jurisdiction. In some instances, the number may be the same number as in box 9.One of the two forms of identification that the recipient presents must include the recipient’s photograph. Gaming establishments owned or licensed by a tribal government may waive the photo ID requirement for payees who are members of that federally recognized Indian tribe and present a tribal member identification card issued by the same tribal government.
12
Second identification no.
Same as above.
13-18
State & local information
These boxes are provided for your convenience only and need not be completed for the IRS.
Sweepstakes, Wagering Pools, and Lotteries
Form W-2G should be completed for each person whom you pay $600 or more in gambling winnings from a sweepstakes, wagering pool, or lottery, if the winnings are at least 300 times the amount of the wager.
Withholding
Federal income tax withholding is required on the winnings if the proceeds (winnings minus the wager) exceed $5,000. Regular gambling withholding applies.
When Paid
Gambling winnings are considered paid when the winner actually receives the money or when the funds are made available without restrictions. For installment or annuity payments, the income is reported in the year each payment is made.
Identical Wagers
Bets placed with the same payer on the same event are treated as identical and their winnings are combined for reporting and withholding purposes.
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Box Title
Form W-2G Box Instructions
1
Reportable winnings
Enter payments of $600 or more if the payment is at least 300 times the wager.
2
Date won
Enter the date of the winning transaction, such as the date of the drawing of the winning number. This might not be the date the winnings are paid.
3
Type of wager
Enter the type of wager (such as raffle or 50-50 drawing) or the name of the lottery (such as Instant, Big 50, Baker’s Dozen, or Powerball) and the price of the wager ($.50, $1, etc.).
4
Federal income tax withheld
Enter any federal income tax withheld, whether regular gambling withholding or backup withholding.
5
Transaction
For a state lottery, enter the ticket number or other identifying number.
6
Race
Not applicable.
7
Winnings from identical wagers
Enter the amount of additional winnings from identical wagers.
8
Cashier
Not applicable.
9
Winner’s TIN
This is required information. Enter the TIN of the person receiving the winnings. For an individual, this will be the social security number (SSN) or individual taxpayer identification number (ITIN). If the winner fails to give you a TIN, backup withholding applies.
10
Window
Not applicable.
11
First identification no.
Except for winnings from state lotteries, as verification of the name, address, and TIN of the person receiving the winnings,enter the identification numbers from two forms of identification.Acceptable forms of identification include a driver’s license, passport, social security card, military identification card, tribalmember identification card issued by a federally recognizedIndian tribe, voter registration card, or completed and unmodified Form W-9. Enter the number and the state or jurisdiction. In some instances, the number may be the samenumber as in box 9.One of the two forms of identification that the recipient presents must include the recipient’s photograph. Gaming establishments owned or licensed by a tribal government may waive the photo ID requirement for payees who are members of that federally recognized Indian tribe and present a tribal member identification card issued by the same tribal government.
12
Second identification no.
Same as above.
13-18
State & local information
These boxes are provided for your convenience only and need not be completed for the IRS.
Bingo, Keno, and Slot Machines
A Form W-2G must be filed for each person to whom you pay:
$1,200 or more in gambling winnings from bingo or slot machines, or,
$1,500 or more from keno after the price of the wager is deducted
To determine if the winnings are reportable, you should total all winnings from all wagers made during a single game.
Withholding
Regular gambling withholding does not apply.
If the winner does not provide a TIN, then you must backup withhold.
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Box Title
Form W-2G Box Instructions
1
Reportable winnings
Enter payments of $1,200 or more from bingo or slot machines or payments of $1,500 or more from keno.
You may use the optional aggregate reporting method to report these payments. Under this method, aggregate multiple payments of reportable gambling winnings from bingo, keno, or slot machines received by a payee in a 24-hour calendar day or“gaming day” on a single Form W-2G. A “gaming day” is a24-hour period that ends at a particular time chosen by the gaming establishment (generally when the establishment is closed or when business is slowest, such as between 3:00 a.m.and 6:00 a.m.). On December 31st, all open information reporting periods must close at 11:59 p.m. to end by the end of the calendar year. On January 1st, all information reporting periods must begin at 12:00 a.m.
For more details and recordkeeping requirements, see Regulations section 1.6041-10(g).
2
Date won
Enter the date of the winning transaction.
3
Type of wager
Enter the type of wager (that is, bingo, keno, or slot machines) and the amount of the wager.
4
Federal income tax withheld
Enter any backup withholding.
5
Transaction
Enter the ticket number, card number (and color, if applicable), machine serial number, or any other information that will help identify the winning transaction.
6
Race
Not applicable.
7
Winnings from identical wagers
Not applicable.
8
Cashier
Enter the initials of the person paying the winnings.
9
Winner’s TIN
This is required information. Enter the TIN of the person receiving the winnings. For an individual, this will be the social security number (SSN) or individual taxpayer identification number (ITIN). If the winner fails to give you a TIN, backup withholding applies.
10
Window
Enter the location of the person paying the winnings, if applicable.
11
First identification no.
As verification of the name, address, and TIN of the person receiving the winnings, enter the identification numbers from two forms of identification. Acceptable forms of identification include a driver’s license, passport, social security card, military identification card, tribal member identification card issued by a federally recognized Indian tribe, voter registration card, or completed and unmodified Form W-9. Enter the number and the state or jurisdiction. In some instances, the number may be the same number as in box 9.One of the two forms of identification that the recipient presents must include the recipient’s photograph. Gaming establishments owned or licensed by a tribal government may waive the photo ID requirement for payees who are members of that federally recognized Indian tribe and present a tribal member identification card issued by the same tribal government.
12
Second identification no.
Same as above.
13-18
State & local information
These boxes are provided for your convenience only and need not be completed for the IRS.
Poker Tournaments
A Form W-2G should be reported for each person to whom you pay more than $5,000 in winnings (minus the wager or buy-in) from each poker tournament that you’ve sponsored. Each poker tournament is counted separately.
Withholding and backup withholding
If you file form W-2G and provide a copy to the winner, then regular gambling withholding does not apply.
However, if they fail to provide a TIN, then you must apply backup withholding to the full amount of the winnings.
Net winnings of $5,000 or less aren’t subject to reporting, withholding, or backup withholding.
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Box Title
Form W-2G Box Instructions
1
Reportable winnings
Enter payments of more than $5,000 in net gambling winnings from a poker tournament.
2
Date won
Enter the date of the poker tournament.
3
Type of wager
Enter “poker tournament” in the entry space.
4
Federal income tax withheld
Enter zero as the amount, unless the winning person hasn’t provided a TIN. If the winning person hasn’t provided a TIN,enter the backup withholding amount.
5
Transaction
Enter the name of the tournament and its sponsor.
6
Race
Not applicable.
7
Winnings from identical wagers
Not applicable.
8
Cashier
Not applicable.
9
Winner’s TIN
This is required information. Enter the TIN of the person receiving the winnings. For an individual, this will be the social security number (SSN) or individual taxpayer identification number (ITIN). If the winner fails to give you a TIN, backup withholding applies.
10
Window
Not applicable.
11
First identification no.
As verification of the name, address, and TIN of the person receiving the winnings, enter the identification numbers from twoforms of identification. Acceptable forms of identification include a driver’s license, social security card, or voter registration. Enter the number and the state or jurisdiction. In some instances, the number may be the same number as in box 9.
12
Second identification no.
Same as above.
13-18
State & local information
These boxes are provided for your convenience only and need not be completed for the IRS.
When are the filing deadlines for Form W-2G?
The deadlines to file Form W-2G with the IRS are as follows:
Important note: The IRS has a 10-form threshold for paper filing. You may choose to submit a paper filing to the IRS if you have less than 10 forms in total. If you are responsible for filing more than 10 forms, then you are required to file electronically.
What are the penalties for Form W-2G?
If you are required to file Form W-2G and fail to file by the due date, then you may be subject to the following IRS penalties:
$60 per information return if you correctly file within 30 days;
Maximum penalty $683,000 per year.
$130 per information return if you correctly file more than 30 days after the due date but by August 1;
Maximum penalty $2,049,000 per year.
$340 per information return if you file after August 1 or you do not file required information returns;
There are some exceptions to the penalty, though. More information regarding exceptions can be found in the IRS instructions.
Key Takeaways
In summary, Form W-2G is used to report gambling winnings and any taxes withheld on those winnings. The filing rules vary by type of gambling activity, and both the payer and winner have specific reporting responsibilities. It’s important to provide accurate information, file on time, and understand withholding requirements to avoid penalties and ensure compliance with IRS regulations.
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.
