Instructions For Forms W-2g And 5754 - 2017 printable pdf download

2017

Department of the Treasury

Internal Revenue Service

Instructions for Forms

W-2G and 5754

Section references are to the Internal Revenue Code unless

type of gambling, the amount of the gambling winnings, and

otherwise noted.

generally the ratio of the winnings to the wager. File W-2G with

the IRS. You must provide a statement to the winner (Copies B

Future Developments

and C of Form W-2G).

Information about any future developments affecting Form W-2G

The types of gambling are discussed in these instructions

or Form 5754 (such as legislation enacted after we release

under the following four headings.

them) will be posted at

IRS.gov/w2g

and IRS.gov/form5754,

respectively. Information about developments affecting these

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

instructions will be posted on both pages.

Transactions Not Discussed

Later.

2. Sweepstakes, Wagering Pools, and

Lotteries.

What's New

3. Bingo, Keno, and Slot

Machines.

4. Poker

Tournaments.

Reportable winnings. The text in box 1 of Form W-2G has

been changed from “Gross winnings” to “Reportable winnings.”

Reportable Gambling Winnings

This change clarifies that for certain types of gambling activity,

Report gambling winnings on Form W-2G if:

the amount shown in box 1 is gross winnings less the amounts of

the wager or buy-in.

1. The winnings (not reduced by the wager) are $1,200 or

more from a bingo game or slot machine,

New payee identification requirements. A payee of bingo,

2. The winnings (reduced by the wager) are $1,500 or more

keno, or slot machine winnings must present two forms of

from a keno game,

identification, one of which must include the payee’s photo. A

completed Form W-9 is acceptable as the other form of

3. The winnings (reduced by the wager or buy-in) are more

identification for bingo, keno, or slot machine winnings. Gaming

than $5,000 from a poker tournament,

establishments owned or licensed by a tribal government may

4. The winnings (except winnings from bingo, slot machines,

waive the photo ID requirement for payees who are members of

keno, and poker tournaments) reduced, at the option of the

that federally-recognized Indian tribe and present a tribal

payer, by the wager are:

member identification card issued by the same tribal

a. $600 or more, and

government. These new rules affect the instructions for boxes 11

and 12 under Bingo, Keno, and Slot Machines. See Regulations

b. At least 300 times the amount of the wager, or

section 1.6041–10(d) and (e).

5. The winnings are subject to federal income tax

withholding (either regular gambling withholding or backup

Optional reporting method for certain winnings. A payer

withholding).

may use the optional aggregate reporting method to report more

than one payment of reportable gambling winnings from bingo,

Tax-Exempt Organizations

keno, or slot machines received by a payee in a 24-hour

calendar day or “gaming day” on a single information return. A

A tax-exempt organization conducting gaming activities may be

“gaming day” is a 24-hour period that ends at a particular time

required to withhold income tax and report on Form W-2G. See

chosen by the gaming establishment (generally when the

Pub. 3079, Tax-Exempt Organizations And Gaming.

establishment is closed or when business is slowest, such as

between 3:00 a.m. and 6:00 a.m.). On December 31st, all open

Withholding

information reporting periods must close at 11:59 p.m. to end by

There are two types of withholding on gambling winnings: (a)

the end of the calendar year. On January 1st, all information

regular gambling withholding at 25% (33.33% for certain

reporting periods must begin at 12:00 a.m. The optional

noncash payments) and (b) backup withholding at 28%. If a

aggregate reporting method affects the bingo, keno, and slot

payment is already subject to regular gambling withholding, it

machines instructions for box 1 under Bingo, Keno, and Slot

isn't subject to backup withholding.

Machines. See Regulations section 1.6041–10(g) for more

details and recordkeeping requirements.

Regular Gambling Withholding for Certain Games

Reminder

You may be required to withhold 25% of gambling winnings for

In addition to these specific instructions, you should also use the

federal income tax. This is referred to as regular gambling

2017 General Instructions for Certain Information Returns.

withholding. Withhold at the 25% rate if the winnings minus the

Those general instructions include information about the

wager are more than $5,000 and are from:

following topics.

Sweepstakes,

Backup withholding.

Wagering pools,

Electronic reporting requirements.

Lotteries (but not state-conducted lotteries), or

Penalties.

Wagering transactions in a pari-mutuel pool with respect to

When and where to file.

horse races, dog races, or jai alai, if the winnings are at least 300

Taxpayer identification numbers.

times the amount wagered.

Statements to recipients.

Corrected and void returns.

Regular gambling withholding doesn't apply to winnings from

Instructions For Forms W-2g And 5754 - 2017

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