Instructions For Form W-2g And 5754 - 2014 (Page 2 of 5) in pdf

Statements to Winners

Backup Withholding

If you are required to file Form W-2G, you must also provide a

You may be required to withhold 28% of gambling winnings

statement to the winner. For information about the requirement

(including winnings from bingo, keno, slot machines, and poker

to furnish a statement to the winner, see part M in the 2014

tournaments) for federal income tax. This is referred to as

General Instructions for Certain Information Returns. You may

backup withholding. You should backup withhold if:

furnish Copies B and C of Form W-2G to the winner.

The winner does not furnish a correct taxpayer identification

number (TIN),

1. Horse Racing, Dog Racing, Jai Alai, and Other

25% has not been withheld, and

Wagering Transactions Not Discussed Later

The winnings are at least $600 and at least 300 times the

wager (or the winnings are at least $1,200 from bingo or slot

File Form W-2G for every person to whom you pay $600 or more

machines or $1,500 from keno or more than $5,000 from a poker

in gambling winnings if the winnings are at least 300 times the

tournament).

amount of the wager. If the person presenting the ticket for

payment is the sole owner of the ticket, complete Form W-2G

Figure any backup withholding on the total amount of the

showing the name, address, and TIN of the winner. If regular

winnings reduced, at the option of the payer, by the amount

gambling withholding is required, the winner must sign Form

wagered. This means the total amount, not just the payments in

W-2G, under penalties of perjury, stating that he or she is the

excess of $600, $1,200, $1,500, or $5,000, is subject to backup

sole owner and that the information listed on the form is correct.

withholding.

If more than one person shares in the winnings from a single

wager, see

Withholding and Forms W-2G for Multiple

Winners,

later.

Report the amount you withheld in box 4 of Form W-2G. Also

file Form 945 to report all backup withholding. You may use

Form W-9, Request for Taxpayer Identification Number and

Withholding

Certification, to request the TIN of the recipient.

You must withhold federal income tax from the winnings if the

winnings minus the wager exceed $5,000 and the winnings are

See the following instructions for each type of gambling for

at least 300 times the wager. Withhold 25% of the proceeds (the

detailed rules on backup withholding.

winnings minus the wager). This is regular gambling withholding.

Foreign Persons

If the winner of reportable gambling winnings does not

provide a TIN, you must backup withhold at the rate of 28% on

Payments of gambling winnings to a nonresident alien individual

any such winnings that are not subject to 25% regular gambling

or a foreign entity are not subject to reporting or withholding on

withholding. That is, backup withholding applies if the winnings

Form W-2G. Generally, gambling winnings paid to a foreign

are at least $600 but not more than $5,000 and are at least 300

person are subject to 30% withholding under sections 1441(a)

times the wager. Figure backup withholding on the amount of the

and 1442(a) and are reportable on Form 1042, Annual

winnings reduced, at the option of the payer, by the amount

Withholding Tax Return for U.S. Source Income of Foreign

wagered.

Persons, and Form 1042-S, Foreign Person's U.S. Source

Income Subject to Withholding. Winnings of a nonresident alien

Multiple Wagers

from blackjack, baccarat, craps, roulette, big-6 wheel, or a live

dog or horse race in the United States from legal wagers initiated

For multiple wagers sold on one ticket, such as the $12 box bet

outside the United States in a parimutuel pool are not subject to

on a Big Triple or Trifecta, the wager is considered as six $2 bets

withholding or reporting. See Pub. 515, Withholding of Tax on

and not one $12 bet for purposes of computing the amount to be

Nonresident Aliens and Foreign Entities.

reported or withheld. Winnings on a $12 box bet must be

reported if they are $600 or more, and federal income tax must

State Tax Information

be withheld if the proceeds total more than $5,000 or, if the

proceeds do not exceed $5,000, if the recipient fails to provide a

Boxes 13, 14, and 15 and Copies 1 and 2 are provided for your

TIN.

convenience only and do not have to be completed for the IRS. If

you withheld state income tax on a payment of gambling

Identical Wagers

winnings, you may enter it in box 15 of Form W-2G. If you do,

also complete boxes 13 and 14. A state identification number

Winnings from identical wagers (for example, two $2 bets on a

(box 13) is assigned by each individual state.

particular horse to win the same race) are added together for

purposes of the reporting and withholding requirements. Also,

If a state tax department requires you to send them a paper

winnings from identical wagers that are not part of the payment

copy of Form W-2G, use Copy 1 for that purpose. Give Copy 2

for which the Form W-2G is being prepared are added together

to the winner for use in filing a state income tax return.

for purposes of withholding to determine if the total amount of

proceeds from identical wagers is more than $5,000.

Local Tax Information

Box 1

Boxes 16, 17, and 18 and Copies 1 and 2 are provided for your

convenience only and do not have to be completed for the IRS. If

Enter payments of $600 or more if the payment is at least 300

you withheld local income tax on a payment of gambling

times the wager.

winnings, you may enter it in box 17 of Form W-2G. If you do,

also complete boxes 16 and 18.

Box 2

Form 5754

Enter the date of the winning event. This is not the date the

money was paid if it was paid after the date of the race (or

If the person receiving the winnings is not the actual winner, or is

game).

a member of a group of winners, see

Specific Instructions for

Form

5754, later.

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Instructions for Forms W-2G and 5754 (2014)

Instructions For Form W-2g And 5754 - 2014 Page 2

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