If you’ve made certain gambling winnings payouts, you’re required to report them using IRS Form W-2G. This form is used to report winnings from lotteries, sweepstakes, horse races, casinos, and other wagering activities. Timely and accurate filing helps ensure compliance with IRS regulations and avoids penalties.
IRS Form W-2G is an IRS information return used to report certain gambling winnings, and any federal income tax withheld from those winnings. This form is typically issued by organizations like casinos, racetracks, state lotteries, or other gambling operators when a player receives a payout that meets IRS reporting thresholds.
The form helps ensure that both the IRS and the recipient accurately report gambling income on their tax returns. Payers are responsible for completing and furnishing Form W-2G to both the winner and the IRS.
Who needs to file Form W-2G?
Payers (such as casinos, lotteries, racetracks, or any organization that pays out qualifying gambling winnings) are the ones required to file Form W-2G. They file it on behalf of the winners to report the amount won and any taxes withheld.
Form W-2G must be filed when the winnings meet or exceed the following thresholds:
$1,200 or more from a slot machine or bingo game (not reduced by wager).
$1,500 or more from a keno game (reduced by the wager).
$5,000 or more from a poker tournament (reduced by the buy-in or entry fee).
$600 or more and at least 300 times the wager from other gambling activities (reduced by the wager at the payer's discretion).
Any winnings subject to federal income tax withholding(either regular or backup withholding)
Enter the payer’s name, address and Taxpayer Identification number (TIN) along with the telephone number to ensure accurate reporting and communication of the form submission.
Step 2: Enter the Winner’s details
Enter the winner’s name, address including apartment number, city, state, country and Zip code.
Step 3: Gambling Winnings details
Box 1: Reportable Winnings
Enter the total amount of gambling winnings won by the winner.
Box 2: Date won
Enter the exact date when the winnings are earned (MM/DD/YYYY format).
Box 3: Type of Wager
Specify the type of wager. Common examples include:
Horse racing
Dog racing
Jai alai
Sweepstakes
Wagering pools
Lotteries
Bingo
Keno
Slot machines
And any other type of gambling's
Box 4: Federal Income tax withheld
Enter any federal income tax withheld from the winnings, if applicable.
Box 5: Transaction
Enter the ticket or transaction number related to the winning wager.
Box 6: Race
If the winnings came from horse or dog racing, include the race number.
Box 7: Winnings from identical wagers
Enter the total amount won from identical wagers grouped together.
Box 8: Cashier
Enter the name or ID number of the cashier who paid out the winnings.
Box 9: Winner’s TIN
Enter the winner’s Taxpayer Identification Number, usually Social Security Number (SSN).
Box 10: Window
Enter the window number or payout location at which the winnings were issued.
Box 11: First Identification Number
Enter the winner's first identification number.
Box 12: Second Identification Number
Enter the second identification number provided by the winner at the time of payment, such as a driver’s license, passport, or state-issued ID.
Box 13: State/Payer’s State Identification Number
Enter the payer’s state abbreviation and the state identification number assigned for state income tax reporting purposes.
Box 14: State Winnings
Enter the amount of gambling winnings that are subject to state income tax.
Box 15: State Income Tax Withheld
Enter the amount of state income tax that was withheld from the winner’s gambling winnings, if any.
Box 16: Local Winnings
Enter any winnings that are subject to local (city or county) income tax.
Box 17: Local Income Tax withheld
Enter the amount of local income tax that was withheld from the winner’s gambling winnings, if any.
Box 18: Name of Locality
Enter the name of the city, town, or other locality that collected local tax.
