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What Is IRS Form W-2G?

November 17th, 2013 No comments

Form W-2G is used to report gambling winnings. If your gambling winnings are high enough, the payer must provide a W-2G form to you and to the IRS, reporting the amount of your gambling winnings.

The types of gambling fall under the following three headings:

 

  • Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed
  • Sweepstakes, Wagering Pools, and Lotteries
  • Bingo, Keno, and Slot Machines

Form W-2G is used to report income and withholding related to gambling.€€ Generally, you will receive a Form W-2G if you receive:

  • $600 or more in gambling winnings and the payout is at least 300 times the amount of the wager (except winnings from bingo, keno, and slot machines);
  • $1,200 or more in gambling winnings from bingo or slot machines;
  • $1,500 or more in proceeds (the amount of winnings less the amount of the wager) from keno; or

Any gambling winnings subject to federal income tax withholding.

Who must file Form W-2G

The payer, namely, the organization sponsoring the gaming event, must file Form W-2G when an individual wins a prize over a specific value amount. The form is used to report gambling winnings OR to report gambling winnings and any federal income tax withheld on the winnings.

Form W-2G due dates

Copy B and C is due to the winner by the end of January. Copy A is due to the IRS by the end of February.  If you are filing electronically, you have until March 31 (an additional month) to file and you can seek also seek an extension of time to file.

How do I complete Form W-2G?

Check the “Corrected” box at the top of the W-2G form if applicable. If you are submitting an original or replacement, leave the correct and void boxes unchecked.

Enter the payer’s name, address, federal identification number and telephone number.

Enter the winner’s name and address and taxpayer identification number or TIN.

Box 1. Enter the gross winnings.

Box 2. Enter the Federal income tax withheld. Federal income tax must be withheld at the rate of 25% on certain winnings less the wager.

Box 3. Select the type of wagers, which include: Horse track race, Dog track race, Jai-alai, State-conducted lottery, Keno, Bingo, Slot Machines and Other.

Box 4. Enter the date won!

Signature and Date. Sign and date Form W-2G if your are the only person entitled to the winnings.

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Categories: 1099 Forms Tags: ,

IRS Form W-2G gambling winnings

June 3rd, 2013 No comments

Form W-2G is used to report gambling winnings.  W-2G is different from Forms 1098 and 1099 in that the 1099 forms must be paper filed on red-ink forms while Copy A of Form W-2G can be printed on plain paper with black ink and mailed along with Form 1096 to the IRS.

If your gambling winnings are high enough, the payer must provide a IRS Form W-2G to you and to the IRS, reporting the amount of your gambling winnings.

The types of gambling fall under the following three headings:

  • Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed
  • Sweepstakes, Wagering Pools, and Lotteries
  • Bingo, Keno, and Slot Machines

Form W-2G is used to report income and withholding related to gambling.  Generally, you will receive a Form W-2G if you receive:

  • $600 or more in gambling winnings and the payout is at least 300 times the amount of the wager (except winnings from bingo, keno, and slot machines);
  • $1,200 or more in gambling winnings from bingo or slot machines;
  • $1,500 or more in proceeds (the amount of winnings less the amount of the wager) from keno; or

Any gambling winnings subject to federal income tax withholding.

Who must file Form W-2G

The payer, namely, the organization sponsoring the gaming event, must file Form W-2G when an individual wins a prize over a specific value amount.  The form is used to report gambling winnings OR to report gambling winnings and any federal income tax withheld on the winnings.

Form W-2G due dates

Copy B and C is due to the winner by the end of January. Copy A is due to the IRS by the end of February.  If you are filing electronically, you have until March 31 (an additional month) to file and you can seek also seek an extension of time to file.

How do I complete Form W-2G?

Check the “Corrected” box at the top of the W-2G form if applicable.

Enter the payer’s name, address, federal identification number and telephone number.

Enter the winner’s name and address.

Box 1. Enter the gross winnings.

Box 2. Enter the Federal income tax withheld.  Federal income tax must be withheld at the rate of 25% on certain winnings less the wager.

Box 3. Select the type of wagers, which include: Horse track race, Dog track race, Jai-alai, State-conducted lottery, Keno, Bingo, Slot Machines and Other.

Box 4. Enter the date won!

Signature and Date. Sign and date Form W-2G if your are the only person entitled to the winnings.

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About IRS Form W-2G

November 30th, 2010 No comments

The Internal Revenue Service Tax Form W-2G must be filed to report payment of certain types of gambling winnings and withholdings on those winnings. Forms of gambling covered by W-2G include bingo, keno and slot machines, horse racing, sweepstakes, wagering pools and lotteries. Copies of the form must be provided to the winner as well as the IRS.

Each type of gambling has specific rules for filing and withholding, and these rules lay out minimum requirements for reporting winnings. For instance, bingo game or slot machine winnings must be reported if over $1,200 (not reduced by the wager). Keno winnings of more than $1500 (reduced by the wager) must be reported and more than $5,000 of poker winnings (reduced by the buy-in) must be disclosed on the W-2G. Horse racing, dog racing, jai alai, and all other gambling winnings must be reported only if higher than $600 and at least 300 times the amount of the wager, or are subject to federal income tax withholding.

Withholdings are entered in box 2 of the W-2G form. Withholding is required at the rate of 25% for gambling winnings of more than $500 (wager reduced), in sweepstakes, wagering pools, lotteries, keno, or any other category of gambling as long as the winnings are more than 300 times the wager. Backup withholdings at a rate of 28% can be required if the winner does not provide a correct taxpayer identification number and the other conditions for withholding have been met.

Electronics, automobiles, or any other non-cash payment must be calculated at FMV (Fair Market Value), and tallied into the total winnings. After subtracting the wager, if the non-cash transfer is valued at over $5,000 it is subject to gambling tax withholding. This can either be paid by the winner to the payer in the amount of 25% or by the payer, in the amount of 33.33%.

For bingo, keno, and slot machines, the W-2G form has boxes to indicate the type of wager, date of the winning transaction, ticket number and card number. For poker tournaments, the name of the tournament and its sponsor and the date of the poker tournament must be listed. For horse and dog racing, the date of the winning event, the race involved, and the type of wager (whether big triple or trifecta for instance) should be given. In all cases the amount of federal and state income tax withheld, and the name, address and TIN of the winner must be entered.

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