Instructions For Form W-2g And 5754 - 2014 (Page 3 of 5) in pdf

Box 3

tickets, such as five for $1, the wager is considered as $.20 for

each ticket.

Enter the type of wager if other than a regular race bet, for

example, Daily Double or Big Triple.

Withholding

Box 4

You must withhold federal income tax from the winnings if the

winnings minus the wager exceed $5,000. Withhold 25% of the

Enter any federal income tax withheld, whether regular gambling

proceeds (the winnings minus the wager). This is regular

withholding or backup withholding.

gambling withholding. If the winner of reportable gambling

winnings does not provide a TIN, you must backup withhold at

Box 5

the rate of 28% on any such winnings that are not subject to 25%

regular gambling withholding. That is, backup withholding

Not applicable.

applies if the winnings are at least $600 but not more than

$5,000 and are at least 300 times the wager. Figure backup

Box 6

withholding on the amount of the winnings reduced, at the option

of the payer, by the amount wagered.

Enter the race (or game) applicable to the winning ticket.

Installment payments of $5,000 or less are subject to regular

Box 7

gambling withholding if the total proceeds from the wager will

Enter the amount of additional winnings from identical wagers.

exceed $5,000.

If payments are to be made for the life of a person (or for the

Box 8 or 10

lives of more than one person), and it is actuarially determined

Enter the cashier and/or window number making the winning

that the total proceeds from the wager are expected to exceed

payment.

$5,000, such payments are subject to 25% regular gambling

withholding. When a third party makes the payments, for

Box 9

example, an insurance company handling the winnings as an

annuity, that third party must withhold.

This is required information. Enter the TIN of the person

receiving the winnings. For an individual this will be the social

When Paid

security number (SSN) or individual taxpayer identification

number (ITIN). If the winner fails to give you a TIN, backup

A payment of winnings is considered made when it is paid, either

withholding applies. See Withholding, earlier.

actually or constructively, to the winner. Winnings are

constructively paid when they are credited to, or set apart for,

Boxes 11 and 12

that person without any substantial limitation or restriction on the

time, manner, or condition of payment. However, if not later than

As verification of the name, address, and TIN of the person

60 days after the winner becomes entitled to the prize, the

receiving the winnings, enter the identification numbers from two

winner chooses the option of a lump sum or an annuity payable

forms of identification. Acceptable forms of identification include

over at least 10 years, the payment of winnings is considered

a driver's license, social security card, or voter registration. Enter

made when actually paid. If the winner chooses an annuity, file

the number and the state or jurisdiction. In some instances, the

Form W-2G each year to report the annuity paid during that year.

number may be the same number as in box 9.

Box 1

Boxes 13 Through 18

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

These boxes are provided for your convenience only and need

times the wager.

not be completed for the IRS. See

State Tax Information

and

Local Tax

Information, earlier.

Box 2

Box 13. Enter the abbreviated name of the state and your state

Enter the date of the winning transaction, such as the date of the

identification number.

drawing of the winning number. This might not be the date the

Box 14. Enter the amount of state winnings.

winnings are paid.

Box 15. Enter the amount of state income tax withheld.

Box 3

Box 16. Enter the amount of local winnings.

Enter the type of wager (such as raffle or 50-50 drawing) or the

Box 17. Enter the amount of local income tax withheld.

name of the lottery (such as Instant, Big 50, Baker's Dozen, or

Box 18. Enter the name of your locality.

Powerball) and the price of the wager ($.50, $1, etc.).

2. Sweepstakes, Wagering Pools, and Lotteries

Box 4

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

Enter any federal income tax withheld, whether regular gambling

in gambling winnings from a sweepstakes, wagering pool, or

withholding or backup withholding.

lottery (including a state-conducted lottery) if the winnings are at

least 300 times the amount of the wager. The wager must be

Box 5

subtracted from the total winnings to determine whether

withholding is required and, at the option of the payer, to

For a state lottery, enter the ticket number or other identifying

determine whether reporting is required. The wager must be

number.

subtracted at the time of the first payment.

Boxes 6 Through 8 and 10

The requirements in this section apply to church raffles,

charity drawings, etc. In the case of one wager for multiple raffle

Not applicable.

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

Instructions For Form W-2g And 5754 - 2014 Page 3

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