Instructions For Forms W-2g And 5754 - 2017 (Page 3 of 5) in pdf

Box 2

Withholding

Enter the date of the winning event. This isn't the date the money

You must withhold federal income tax from the winnings if the

was paid if it was paid after the date of the race (or game).

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

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

gambling withholding. If the winner of reportable gambling

Box 3

winnings doesn't provide a TIN, you must backup withhold at the

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

rate of 28% on any such winnings that aren't subject to 25%

example, Daily Double or Big Triple.

regular gambling withholding. That is, backup withholding

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 4

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

Enter any federal income tax withheld, whether regular gambling

of the payer, by the amount wagered.

withholding or backup withholding.

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

Box 5

gambling withholding if the total proceeds from the wager will

exceed $5,000.

Not applicable.

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

Box 6

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

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

that the total proceeds from the wager are expected to exceed

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

withholding. When a third party makes the payments, for

Box 7

example, an insurance company handling the winnings as an

Enter the amount of additional winnings from identical wagers.

annuity, that third party must withhold.

Box 8 or 10

When Paid

Enter the cashier and/or window number making the winning

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

payment.

actually or constructively, to the winner. Winnings are

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

that person without any substantial limitation or restriction on the

Box 9

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

This is required information. Enter the TIN of the person

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

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

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

security number (SSN) or individual taxpayer identification

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

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

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

withholding applies. See Withholding, earlier.

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

Boxes 11 and 12

Box 1

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

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

receiving the winnings, enter the identification numbers from two

times the wager.

forms of identification. Acceptable forms of identification include

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

Box 2

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

number may be the same number as in box 9.

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

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

winnings are paid.

Boxes 13 Through 18

These boxes are provided for your convenience only and need

Box 3

not be completed for the IRS. See

State Tax Information

and

Local Tax

Information, earlier.

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

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

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

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

identification number.

Box 14. Enter the amount of state winnings.

Box 4

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

Enter any federal income tax withheld, whether regular gambling

withholding or backup withholding.

Box 16. Enter the amount of local winnings.

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

Box 5

Box 18. Enter the name of your locality.

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

number.

2. Sweepstakes, Wagering Pools, and Lotteries

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

Boxes 6 Through 8 and 10

in gambling winnings from a sweepstakes, wagering pool, or

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

Not applicable.

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

subtracted from the total winnings to determine whether

Box 9

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

determine whether reporting is required. The wager must be

This is required information. Enter the TIN of the person

subtracted at the time of the first payment.

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

security number (SSN) or individual taxpayer identification

The requirements in this section apply to church raffles,

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

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

withholding applies. See

Withholding

under Sweepstakes,

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

Wagering Pools, and Lotteries, earlier.

each ticket.

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Instructions for Forms W-2G and 5754 (2017)

Instructions For Forms W-2g And 5754 - 2017 Page 3

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