Instructions For Form W-2g And 5754 - 2014
ADVERTISEMENT
1
2
3
4
52014
Department of the Treasury
Internal Revenue Service
Instructions for Forms
W-2G and 5754
Section references are to the Internal Revenue Code unless
5. The winnings are subject to federal income tax
otherwise noted.
withholding (either regular gambling withholding or backup
withholding).
Future Developments
Tax-Exempt Organizations
Information about any future developments affecting Form W-2G
or Form 5754 (such as legislation enacted after we release
A tax-exempt organization conducting gaming activities may be
them) will be posted at
and
required to withhold income tax and report on Form W-2G. See
form5754, respectively. Information about developments
Pub. 3079, Tax-Exempt Organizations And Gaming.
affecting these instructions will be posted on both pages.
Withholding
Reminder
There are two types of withholding on gambling winnings: (a)
In addition to these specific instructions, you should also use the
regular gambling withholding at 25% (33.33% for certain
2014 General Instructions for Certain Information Returns.
noncash payments) and (b) backup withholding at 28%. If a
Those general instructions include information about the
payment is already subject to regular gambling withholding, it is
following topics.
not subject to backup withholding.
Backup withholding.
Electronic reporting requirements.
Regular Gambling Withholding
Penalties.
You may be required to withhold 25% of gambling winnings for
When and where to file.
federal income tax. This is referred to as regular gambling
Taxpayer identification numbers.
withholding. Withhold at the 25% rate if the winnings minus the
Statements to recipients.
wager are more than $5,000 and are from:
Corrected and void returns.
Sweepstakes,
Other general topics.
Wagering pools,
Lotteries, or
You can get the general instructions at IRS.gov or by calling
Other wagering transactions, including transactions involving
1-800-TAX-FORM (1-800-829-3676).
horse races, dog races, or jai alai, if the winnings are at least 300
times the amount wagered.
Specific Instructions for Form W-2G
Do not withhold at the 25% rate on winnings from bingo,
File Form W-2G, Certain Gambling Winnings, to report gambling
keno, or slot machines. Also, do not withhold on winnings from
winnings and any federal income tax withheld on those winnings.
any other wagering transaction if the winnings are $5,000 or
The requirements for reporting and withholding depend on the
less. However, see
Backup
Withholding, later.
type of gambling, the amount of the gambling winnings, and
generally the ratio of the winnings to the wager. File W-2G with
Regular gambling withholding is figured on the total amount
the IRS. You must provide a statement to the winner (Copies B
of gross proceeds (the amount of winnings minus the amount
and C of Form W-2G).
wagered), not merely on the amount in excess of $5,000.
The types of gambling are discussed in these instructions
Report the amount you withheld in box 4 of Form W-2G. Also
under the following four headings.
file Form 945, Annual Return of Withheld Federal Income Tax, to
1. Horse Racing, Dog Racing, Jai Alai, and Other Wagering
report all your gambling withholding.
Transactions Not Discussed
Later.
2. Sweepstakes, Wagering Pools, and
Lotteries.
Noncash payments. A noncash payment, such as a car, must
3. Bingo, Keno, and Slot
Machines.
be taken into account at its fair market value (FMV) for purposes
4. Poker
Tournaments.
of reporting and withholding. If the FMV exceeds $5,000, after
deducting the price of the wager, the winnings are subject to
Reportable Gambling Winnings
25% regular gambling withholding. The tax you must withhold is
computed and paid under either of the following two methods.
Report gambling winnings on Form W-2G if:
1. The winner pays the withholding tax to the payer. In this
1. The winnings (not reduced by the wager) are $1,200 or
case, the withholding is 25% of the FMV of the noncash payment
more from a bingo game or slot machine,
minus the amount of the wager.
2. The winnings (reduced by the wager) are $1,500 or more
2. The payer pays the withholding tax. In this case, the
from a keno game,
withholding is 33.33% of the FMV of the noncash payment
3. The winnings (reduced by the wager or buy-in) are more
minus the amount of the wager.
than $5,000 from a poker tournament,
If you use method 2, enter the sum of the noncash payment
4. The winnings (except winnings from bingo, slot machines,
and the withholding tax in box 1 of Form W-2G and the
keno, and poker tournaments) reduced, at the option of the
withholding tax paid by the payer in box 4.
payer, by the wager are:
a. $600 or more, and
b. At least 300 times the amount of the wager, or
Dec 02, 2013
Cat. No. 27989I
ADVERTISEMENT
0 votes
Related Articles
Related forms
Instructions For Forms W-2g And 5754 - Certain Gambling Winnings And Statement By Person(s) Receiving Gambling Winnings - 2017
Financial
Instructions For Forms W-2g And 5754 - Certain Gambling Winnings And Statement By Person(s) Receiving Gambling Winnings - 2018
Financial
Instructions For Forms W-2 And W-3 - Wage And Tax Statement And Transmittal Of Wage And Tax Statements - 2006
Financial
Instructions For Forms W-2 And W-3 - Wage And Tax Statement And Transmittal Of Wage And Tax Statements - 2006
Financial
Instructions For Forms W-2 And W-3 - Wage And Tax Statement And Transmittal Of Wage And Tax Statements - 2017
Financial
Related Categories
Parent category: Legal