Section references are to the Internal Revenue Code unless otherwise noted.
Information about any future developments affecting Form W-2G or Form 5754 (such as legislation enacted after they were published) will be posted at IRS.gov/FormW2G and IRS.gov/Form5754, respectively. Information about developments affecting these instructions will be posted on both pages.
In addition to these specific instructions, you should also use the current General Instructions for Certain Information Returns. Those general instructions include information about the following topics.
You can get the general instructions at IRS.gov/1099GeneralInstructions.
Continuous-use form and instructions.
Form W-2G and its instructions have been converted from an annual revision to continuous use. Both the form and instructions will be updated as needed. For the most recent version, go to IRS.gov/FormW2G.
Regular withholding rate.
The withholding rate under Section 3402(q) applicable to winnings of $5,000 or more from sweepstakes, wagering pools, certain parimutuel pools, jai alai, and lotteries (formerly 25%) is 24%. This rate appears in the Withholding , Regular Gambling Withholding for Certain Games , Noncash payments , and Backup Withholding sections under Specific Instructions for Form W-2G ; the Withholding section under 1. Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed Later ; the Withholding section under 2. Sweepstakes, Wagering Pools, and Lotteries ; and the Withholding and Forms W-2G for Multiple Winners section under Specific Instructions for Form 5754.
Backup withholding rate.
The backup withholding rate under Section 3406 applicable to certain winnings where the winner doesn't furnish a correct taxpayer identification number (TIN) (formerly 28%) is 24%. This rate appears in the Withholding , Regular Gambling Withholding for Certain Games , and Backup Withholding sections under Specific Instructions for Form W-2G ; the Withholding section under 1. Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed Later ; and the Withholding section under 2. Sweepstakes, Wagering Pools, and Lotteries.
A payee of gambling winnings meeting the reporting thresholds for bingo, keno, and slot machines, and a payee of gambling winnings meeting the withholding thresholds from horse racing, dog racing, jai alai, sweepstakes, wagering pools, lotteries, and certain other wagering transactions, but not from a state-conducted lottery, must present two forms of identification, one of which must include the payee's photo. A completed and signed Form W-9 is acceptable as the nonphoto form of identification. Gaming establishments owned or licensed by a tribal government of a federally recognized Indian tribe may waive the photo ID requirement for payees who are members of that tribe and present a tribal member identification card issued by the same tribe. These rules affect boxes 11 and 12 under the instructions for 1. Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed Later ; 2. Sweepstakes, Wagering Pools, and Lotteries ; and 3. Bingo, Keno, and Slot Machines .
Rules for determining the amount of the wager for certain gambling winnings.
All wagers placed in a single parimutuel pool and represented on a single ticket are aggregated and treated as a single wager for purposes of determining the amount of the wager with respect to winnings from parimutuel betting on horse racing, dog racing, or jai alai. These rules affect boxes 1 and 4 under the instructions for Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed Later.
Amounts paid with respect to identical wagers are treated as paid with respect to a single wager for purposes of calculating the amount of proceeds from a wager. Two or more wagers are identical wagers if winning depends on the occurrence (or non-occurrence) of the same event or events; the wagers are placed with the same payer; and, in the case of horse races, dog races, or jai alai, the wagers are placed in the same parimutuel pool. These rules affect boxes 1, 4, and 7 under the instructions for Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed Later ; and for Sweepstakes, Wagering Pools, and Lotteries.
Optional reporting method for bingo, keno, and slot machine winnings.
A payer may use the optional aggregate reporting method to report more than one payment of reportable gambling winnings from bingo, keno, or slot machines received by a payee in a 24-hour calendar day or "gaming day" on a single information return. For more information, see the instructions for box 1 under Bingo, Keno, and Slot Machines .