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Form W-2G Instructions and Boxes Breakdown: Rules for Reporting Gambling Winnings

Payers, like casinos, racetracks, state lotteries, tribal casinos, and similar operators, need to file Form W-2G with the IRS to report gambling winnings (if they meet the pre-determined thresholds) and any federal income tax withheld on those winnings, and must furnish copies to the winner. This guide on W-2G instructions (for TY 2025) covers how to fill out the form box-by-box, thresholds, and other essential details that will help you file error-free Forms W-2G.

What Is Form W-2G?

The form is used for IRS-related purposes to report gambling winnings to both the IRS and recipients. As a payer, you must determine whether winnings meet IRS thresholds and, when they do, file Form W-2G with the IRS and furnish a statement to the winner.

There are W-2G reporting thresholds, such as:

  • Slots or bingo: Report when winnings are $1,200 or more.
  • Keno: Report when winnings are $1,500 or more, after subtracting the ticket cost (wager).
  • Poker tournament: Report when net winnings are more than $5,000 (winnings minus the buy-in or wager).
  • Other wagers: Report when winnings are $600 or more, and the winnings are at least 300 times the amount wagered.

If the winner doesn’t provide a correct TIN and the winnings aren’t subject to regular gambling withholding, you must apply backup withholding at 24% on reportable gambling winnings. You may calculate backup withholding on the winnings minus the amount wagered. Report any amount of federal income tax withheld in Box 4, deposit by EFT (e.g., via EFTPS), and report the withholding on Form 945.

For non-cash prizes, the payer must determine and report fair market value (FMV). For non-cash prizes, FMV should be supported with vendor invoices or market comparisons.

If you do not file Form W-2G accurately by the due date and you fail to show any reasonable cause, penalties may apply per return as follows:

  • $60, if you correctly file within 30 days after the due date
  • $130, if you correctly file between 31 days after the due date and August 1, 2026
  • $340, if you file after August 1, 2026, or if you do not file the required information returns
  • At least $680 per information return for intentional disregard (with no maximum penalty)

Reporting and withholding rules vary depending on the type of gambling, payout amount, and wager-to-win ratio.

Who Must File Form W-2G?

A payer must file Form W-2G to report gambling winnings and any amount of federal income tax withheld on those winnings when the payment meets the Form W-2G reporting thresholds or is subject to federal income tax withholding. The payer that makes the payment to the winner is the one that files Form W-2G for that payment.

Any payer that makes reportable gambling winnings—most notably casinos, racetracks, lotteries, state/tribal gaming commissions, and organizations hosting raffles, sweepstakes, or gaming events—must file W-2G if the wagers qualify as gambling and a qualifying payout occurs. If multiple entities are involved, the actual disbursing entity issues the form.

Note: If gambling winnings paid to a U.S. person meet the Form W-2G reporting thresholds, the payer must file Form W-2G and report the winnings, even if the winner may later reduce or eliminate any tax liability by claiming allowable gambling loss deductions or other tax attributes.

IRS Form W-2G Boxes Explained

Here’s the W-2G box breakdown so you know how to fill out Form W-2G:

Box Description What to Enter
Box 1 Reportable winnings The reportable amount for the transaction (if winnings aren’t paid in cash, include the fair market value (FMV) of the item won)
Box 2 Date won Exact date of the winning event.
Box 3 Type of wager Enter the type of wager (and the amount of the wager where required—such as for bingo/keno/slot machine winnings; for poker tournaments, enter “poker tournament”)
Box 4 Federal income tax withheld Any federal income tax withheld (including regular gambling withholding or backup withholding), if any.
Box 5 Transaction Information that helps identify the winning transaction (for example, a ticket number, card number, machine serial number, or other identifying information; for a poker tournament, enter the name of the tournament and its sponsor).
Box 6 Race Enter the race (or game) that is applicable to the winning ticket (this box is not applicable for some types of winnings).
Box 7 Winnings from identical wagers Fill in the amount paid as additional winnings from identical wagers.
Box 8 or 10 Box 8 (Cashier) / Box 10 (Window) Enter the cashier’s initials/number and/or the window number or payment location making the winning payment, if applicable.
Box 9 Winner’s TIN Enter the winner’s taxpayer identification number (TIN)—for an individual, this is the SSN or ITIN; for an entity, this is generally the EIN.
Boxes 11, 12 Supporting ID Except for winnings from state lotteries, enter the identification numbers from two forms of identification (one of which generally must include the recipient’s photo).
Boxes 13, 14, 15 State tax information If you withheld state income tax, you may enter it in box 15, and if you do, also complete boxes 13 and 14.
Boxes 16, 17, 18 Local tax information If you withheld local income tax, you may enter it in box 17, and if you do, also complete boxes 16 and 18.

Notes:

  • Complete the applicable boxes based on the type of gambling; some boxes are not applicable for certain types, and boxes 13–18 are for convenience only, and you don’t have to fill those in for the IRS.
  • For non-cash awards, you need to establish a defensible fair-market value by relying on trustworthy pricing references and maintain clear records of how you reached that figure.

Step-by-Step W-2G Instructions (2025 TY)

Step 1: Collect the winner’s information from the winner

Request a completed Form W-9 to obtain the winner’s correct TIN.

Step 2: Determine Reportability

The payouts have to be compared with IRS thresholds. For parimutuel pool tickets, add up all wagers shown on the same ticket, and combine winnings from identical wagers when determining reporting and withholding.

Step 3: Calculate W-2G withholding requirements

Regular gambling withholding is generally 24% (31.58% for certain noncash payments when the payer pays the tax), and backup withholding—when it applies—is 24%.

Winnings paid to nonresident aliens follow a different regime—typically a 30% withholding rate (subject to treaty reductions) and reporting on Form 1042-S, not Form W-2G.

Step 4: Complete the form

Complete the form after entering the winner’s details, such as name, SSN, address, etc. Also, enter the payer details, total winnings, and any withholding that may be applicable.

Step 5: Furnish copies to the recipient and the IRS

Furnish Copies B and C to the recipient by February 2, 2026. File Copy A with the IRS by March 2, 2026, if filing on paper, or by March 31, 2026, if filing electronically.

Note: The next business day automatically becomes the updated due date if the statutory due date falls on a Saturday, Sunday, or legal holiday.

Step 6: Retain Records

Generally, keep copies of Forms W-2G filed with the IRS (or the ability to reconstruct the data) for at least 3 years from the due date of the returns, and keep them for 4 years if backup withholding was imposed.

Common Mistakes and IRS Penalties

Common mistakes that can lead to incorrect Form W-2G reporting (and potential IRS penalties for late or incorrect returns) include:

  • Filing Form W-2G when it isn’t required
  • Failing to include the FMV of non-cash prizes
  • Not applying 24% backup withholding when required
  • Entering the wrong withholding amount in Box 4
  • Late or incorrect filings that trigger penalties

These errors can be substantially reduced by requesting the winner’s TIN using Form W-9, keeping documentation supporting noncash prize FMV, and filing on time.

How to File W-2G with Tax1099?

The following steps will help you understand how to maneuver through Tax1099 to file Form W-2G:

Step 1: Get on the Platform

Use your business EIN to log in or create a new Tax1099 profile.

Step 2: Load Your Data

Add W-2G information by inputting it in, downloading an Excel/CSV file, or syncing your bookkeeping program.

Step 3: Run Checks

Run TIN match to valid TINs. Any inconsistencies between TINs and IRS records are automatically flagged by the system.

Step 4: Complete the Form

Fill out all necessary W-2G fields (1–10) and enter the payee’s information.

Step 5: Review and Correct Problems

To fix any missing or inaccurate information, scan the form before you hit submit.

Step 6: Online Submission

Tax1099 electronically submits the form with the IRS and sends copies to the recipients via USPS First Class mail or secure digital access.

Step 7: Store Records

Completed forms, along with audit-friendly logs, are safely stored for at least four years.

Real-Life Scenarios

These examples show when Form W-2G is required and when 24% withholding may apply:

Scenario Is W-2G required? IRS rule that triggers reporting
1,500 dollars slot machine win Yes Slots or bingo winnings of 1,200 dollars or more must be reported on Form W-2G
1,800 dollars keno win, and the winner did not provide a TIN Yes Keno winnings of 1,500 dollars or more (after deducting the ticket cost) must be reported on Form W-2G
6,200 dollars poker tournament net win Yes Poker tournament winnings must be reported when net winnings are more than $5,000 after being reduced by the buy-in or wager
400 dollars lottery win No Other wagers are reported only when winnings are 600 dollars or more and at least 300 times the amount wagered
Group raffle split among three winners Depends Determine reporting based on the total winnings and wager before splitting; use Form 5754 to allocate the winnings and issue a separate Form W-2G to each winner when reporting is required

FAQs

1. Do all winnings require W-2G?

No. Only when winnings meet IRS thresholds or when withholding applies.

2. Do non-cash prizes require a W-2G?

Only if the noncash prize is reportable (thresholds are met) or the payment is subject to federal income tax withholding. If Form W-2G is required, report the fair market value (FMV) of the noncash prize.

3. What to do when there is no access to the SSN or TIN of the winner?

File Form W-2G when winnings are reportable or subject to withholding. If the winner doesn’t provide a correct TIN and regular gambling withholding doesn’t apply, backup withhold 24% when required. Regular gambling withholding is generally 24%, but certain noncash payments can require 31.58% withholding when the payer pays the tax.

4. Can the e-filing of all W-2G forms be clubbed?

Generally, if you file 10 or more information returns in aggregate (across most return types), you must file them electronically unless the IRS grants a waiver (Form 8508).

5. Is it necessary to include state taxes on W-2G?

No. Boxes 13–18 (state/local) are provided for your convenience and don’t have to be completed for the IRS. However, if you withheld state or local tax, you may complete those boxes and use the state copies as needed (including if a state requires a paper copy).

6. If several wins amount to more than the criterion, does a single win below the threshold need to be reported?

Not always—winnings from identical wagers are added together to report them and determine withholding requirements, and certain wagers represented on a single ticket in the same parimutuel pool must be aggregated to determine the amount of the wager.

Use Tax1099 to securely e-file W-2Gs, reduce errors, stay compliant, and avoid IRS penalties.

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