Instructions For Forms W-2g And 5754 - 2018
ADVERTISEMENT
1
2
3
4
5
62018
Department of the Treasury
Internal Revenue Service
Instructions for Forms
W-2G and 5754
New Rules for Determining the Amount of the
Section references are to the Internal Revenue Code unless
otherwise noted.
Wager for Certain Gambling Winnings
Future Developments
All wagers placed in a single parimutuel pool and represented on
a single ticket are aggregated and treated as a single wager for
Information about any future developments affecting Form W-2G
purposes of determining the amount of the wager with respect to
or Form 5754 (such as legislation enacted after they were
winnings from parimutuel betting on horse racing, dog racing, or
published) will be posted at
IRS.gov/FormW2G
and
IRS.gov/
jai alai. These new rules affect boxes 1 and 4 under the
Form5754, respectively. Information about developments
instructions for Horse Racing, Dog Racing, Jai Alai, and Other
affecting these instructions will be posted on both pages.
Wagering Transactions Not Discussed Later. See Regulations
What’s New
section 31.3402(q)-1(c)(1)(ii).
Amounts paid with respect to identical wagers are treated as
New regular withholding rate
paid with respect to a single wager for purposes of calculating
the amount of proceeds from a wager. Two or more wagers are
Effective for taxable years beginning after December 31, 2017,
identical wagers if winning depends on the occurrence (or
the withholding rate under Section 3402(q) applicable to
non-occurrence) of the same event or events; the wagers are
winnings of $5,000 or more from sweepstakes, wagering pools,
placed with the same payer; and, in the case of horse races, dog
certain parimutuel pools, jai alai, and lotteries (formerly 25%) is
races, or jai alai, the wagers are placed in the same parimutuel
now 24%. This change affects the rate listed in the Withholding,
pool. These new rules affect boxes 1, 4, and 7 under the
Regular Gambling Withholding for Certain Games, Noncash
instructions for Horse Racing, Dog Racing, Jai Alai, and Other
payments, and Backup Withholding sections under Specific
Wagering Transactions Not Discussed Later and for
Instructions for Form W-2G; the Withholding section under 1.
Sweepstakes, Wagering Pools, and Lotteries. See Regulations
Horse Racing, Dog Racing, Jai Alai, and Other Wagering
section 31.3402(q)-1(c)(1)(iii)(A).
Transactions Not Discussed Later; the Withholding section
Reminders
under 2. Sweepstakes, Wagering Pools, and Lotteries; and the
Withholding and Forms W-2G for Multiple Winners section under
In addition to these specific instructions, you should also use the
Specific Instructions for Form 5754. See P.L. 115-97, Title I,
2018 General Instructions for Certain Information Returns.
Subtitle A, Part I, Section 11001(a) for more information.
Those general instructions include information about the
New backup withholding rate
following topics.
Backup withholding.
Effective for taxable years beginning after December 31, 2017,
Electronic reporting requirements.
the backup withholding rate under Section 3406 applicable to
Penalties.
certain winnings where the winner doesn't furnish a correct
When and where to file.
taxpayer identification number (TIN) (formerly 28%) is now 24%.
Taxpayer identification numbers.
This change affects the rate listed in the Withholding, Regular
Statements to recipients.
Gambling Withholding for Certain Games and Backup
Corrected and void returns.
Withholding sections under Specific Instructions for Form W-2G;
Other general topics.
the Withholding section under 1. Horse Racing, Dog Racing, Jai
Alai, and Other Wagering Transactions Not Discussed Later;
You can get the general instructions at IRS.gov/OrderForms.
and the Withholding section under 2. Sweepstakes, Wagering
Payee identification rules for bingo, keno, and slot ma-
Pools, and Lotteries. See P.L. 115-97, Title I, Subtitle A, Part I,
chines. A payee of bingo, keno, or slot machine winnings must
Section 11001(a) for more information.
present two forms of identification, one of which must include the
payee's photo and one of which may be a properly completed
Expanded Payee Identification Rules
Form W-9. For more information, see the instructions for boxes
Except for a payee of winnings of a state-conducted lottery, a
11 and 12 under Bingo, Keno, and Slot Machines.
payee of gambling winnings meeting the withholding thresholds
Optional reporting method for bingo, keno, and slot ma-
from horse racing, dog racing, jai alai, sweepstakes, wagering
chine winnings. A payer may use the optional aggregate
pools, lotteries, and certain other wagering transactions must
reporting method to report more than one payment of reportable
present two forms of identification, one of which must include the
gambling winnings from bingo, keno, or slot machines received
payee's photo. A completed and signed Form W-9 is acceptable
by a payee in a 24-hour calendar day or "gaming day" on a
as the other form of identification. Gaming establishments
single information return. For more information, see the
owned or licensed by a tribal government of a
instructions for box 1 under Bingo, Keno, and Slot Machines.
federally-recognized Indian tribe may waive the photo ID
requirement for payees who are members of that tribe and
Specific Instructions for Form W-2G
present a tribal member identification card issued by the same
tribe.
File Form W-2G, Certain Gambling Winnings, to report gambling
These new rules affect boxes 11 and 12 under the
winnings and any federal income tax withheld on those winnings.
instructions for Horse Racing, Dog Racing, Jai Alai, and Other
The requirements for reporting and withholding depend on the
Wagering Transactions Not Discussed Later and for
type of gambling, the amount of the gambling winnings, and
Sweepstakes, and Wagering Pools, and Lotteries. See
generally the ratio of the winnings to the wager. File W-2G with
Regulations section 31.3402(q) -1(e)(1)(v), (2)(ii), and (3).
the IRS. You must provide a statement to the winner (Copies B
and C of Form W-2G).
Jan 23, 2018
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 - 2018
Financial
Instructions For Forms W-2g And 5754 - Certain Gambling Winnings And Statement By Person(s) Receiving Gambling Winnings - 2017
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: Financial