Instructions For Forms W-2g And 5754 - 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
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
2. Sweepstakes, Wagering Pools, and
What's New
3. Bingo, Keno, and Slot
4. Poker
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
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
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
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.
Backup withholding.
Wagering pools,
Electronic reporting requirements.
Lotteries (but not state-conducted lotteries), or
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
Other general topics.
bingo, keno, or slot machines, nor does it apply to winnings from
You can get the general instructions at
other wagering transactions if the winnings are $5,000 or less.
However, see
Withholding, later.
Specific Instructions for Form W-2G
Regular gambling withholding is figured on the total amount
File Form W-2G, Certain Gambling Winnings, to report gambling
of gross proceeds (the amount of winnings minus the amount
winnings and any federal income tax withheld on those winnings.
wagered), not merely on the amount in excess of $5,000.
The requirements for reporting and withholding depend on the
Apr 27, 2017
Cat. No. 27989I


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