Instructions For Forms W-2g And 5754 - 2018 (Page 4 of 6) in pdf

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, 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.

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

each ticket.

Box 7

Enter the amount of additional winnings from identical wagers.

Withholding

You must withhold federal income tax from the winnings if the

Box 9

winnings minus the wager exceed $5,000. Withhold 24% of the

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

This is required information. Enter the TIN of the person

gambling withholding. If the winner of reportable gambling

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

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

security number (SSN) or individual taxpayer identification

rate of 24% on any such winnings that aren't subject to 24%

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

regular gambling withholding. That is, backup withholding

withholding applies. See

Withholding

under Sweepstakes,

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

Wagering Pools, and Lotteries, earlier.

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

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

Boxes 11 and 12

of the payer, by the amount wagered.

Except for winnings from state lotteries, as verification of the

name, address, and TIN of the person receiving the winnings,

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

enter the identification numbers from two forms of identification.

gambling withholding if the total proceeds from the wager will

Acceptable forms of identification include a driver's license,

exceed $5,000.

passport, social security card, military identification card, tribal

member identification card issued by a federally-recognized

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

Indian tribe, voter registration card, or completed and

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

unmodified Form W-9. Enter the number and the state or

that the total proceeds from the wager are expected to exceed

jurisdiction. In some instances, the number may be the same

$5,000, such payments are subject to 24% regular gambling

number as in box 9.

withholding. When a third party makes the payments, for

example, an insurance company handling the winnings as an

One of the two forms of identification that the recipient

annuity, that third party must withhold.

presents must include the recipient's photograph. Gaming

establishments owned or licensed by a tribal government may

When Paid

waive the photo ID requirement for payees who are members of

that federally-recognized Indian tribe and present a tribal

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

member identification card issued by the same tribal

actually or constructively, to the winner. Winnings are

government.

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

person without any substantial limitation or restriction on the

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

Boxes 13 Through 18

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

These boxes are provided for your convenience only and need

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

not be completed for the IRS. See

State Tax Information

and

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

Local Tax

Information, earlier.

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

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

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

identification number.

Identical Wagers

Box 14. Enter the amount of state winnings.

Winnings from "identical wagers" are added together for

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

purposes of the reporting and withholding requirements. Two or

more wagers are identical wagers if they are placed with the

Box 16. Enter the amount of local winnings.

same payer and winning depends on the occurrence (or

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

non-occurrence) of the same event or events.

Box 18. Enter the name of your locality.

Box 1

3. Bingo, Keno, and Slot Machines

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

File Form W-2G for every person to whom you pay $1,200 or

times the wager.

more in gambling winnings from bingo or slot machines, or

$1,500 or more from keno after the price of the wager for the

Box 2

winning keno game is deducted. If the winnings aren't paid in

cash, the FMV of the item won is considered the amount of the

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

winnings. Total all winnings from all wagers made during a single

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

bingo or keno game to determine whether the winnings are

winnings are paid.

reportable. Winnings and losses from other wagering

transactions aren't to be taken into account in arriving at the

Box 3

$1,200 or $1,500 figure.

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

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

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Instructions for Forms W-2G and 5754 (2018)

Instructions For Forms W-2g And 5754 - 2018 Page 4

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