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.<\/p>\n
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.<\/p>\n
There are W-2G reporting thresholds, such as:<\/p>\n
If the winner doesn\u2019t provide a correct TIN and the winnings aren\u2019t 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.<\/p>\n
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.<\/p>\n
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:<\/p>\n
Reporting and withholding rules vary depending on the type of gambling, payout amount, and wager-to-win ratio.<\/p>\n
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.<\/p>\n
Any payer that makes reportable gambling winnings\u2014most notably casinos, racetracks, lotteries, state\/tribal gaming commissions, and organizations hosting raffles, sweepstakes, or gaming events\u2014must 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.<\/p>\n
Note:<\/b> 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.<\/p>\nIRS Form W-2G Boxes Explained<\/h2>\n
Here\u2019s the W-2G box breakdown so you know how to fill out Form W-2G:<\/p>\n
| Box<\/th>\n | Description<\/th>\n | What to Enter<\/th>\n<\/tr>\n<\/thead>\n | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Box 1<\/td>\n | Reportable winnings<\/td>\n | The reportable amount for the transaction (if winnings aren\u2019t paid in cash, include the fair market value (FMV) of the item won)<\/td>\n<\/tr>\n | ||||||||||||||||||
| Box 2<\/td>\n | Date won<\/td>\n | Exact date of the winning event.<\/td>\n<\/tr>\n | ||||||||||||||||||
| Box 3<\/td>\n | Type of wager<\/td>\n | Enter the type of wager (and the amount of the wager where required\u2014such as for bingo\/keno\/slot machine winnings; for poker tournaments, enter \u201cpoker tournament\u201d)<\/td>\n<\/tr>\n | ||||||||||||||||||
| Box 4<\/td>\n | Federal income tax withheld<\/td>\n | Any federal income tax withheld (including regular gambling withholding or backup withholding), if any.<\/td>\n<\/tr>\n | ||||||||||||||||||
| Box 5<\/td>\n | Transaction<\/td>\n | 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).<\/td>\n<\/tr>\n | ||||||||||||||||||
| Box 6<\/td>\n | Race<\/td>\n | Enter the race (or game) that is applicable to the winning ticket (this box is not applicable for some types of winnings).<\/td>\n<\/tr>\n | ||||||||||||||||||
| Box 7<\/td>\n | Winnings from identical wagers<\/td>\n | Fill in the amount paid as additional winnings from identical wagers.<\/td>\n<\/tr>\n | ||||||||||||||||||
| Box 8 or 10<\/td>\n | Box 8 (Cashier) \/ Box 10 (Window)<\/td>\n | Enter the cashier’s initials\/number and\/or the window number or payment location making the winning payment, if applicable.<\/td>\n<\/tr>\n | ||||||||||||||||||
| Box 9<\/td>\n | Winner\u2019s TIN<\/td>\n | Enter the winner\u2019s taxpayer identification number (TIN)\u2014for an individual, this is the SSN or ITIN; for an entity, this is generally the EIN.<\/td>\n<\/tr>\n | ||||||||||||||||||
| Boxes 11, 12<\/td>\n | Supporting ID<\/td>\n | Except for winnings from state lotteries, enter the identification numbers from two forms of identification (one of which generally must include the recipient\u2019s photo).<\/td>\n<\/tr>\n | ||||||||||||||||||
| Boxes 13, 14, 15<\/td>\n | State tax information<\/td>\n | If you withheld state income tax, you may enter it in box 15, and if you do, also complete boxes 13 and 14.<\/td>\n<\/tr>\n | ||||||||||||||||||
| Boxes 16, 17, 18<\/td>\n | Local tax information<\/td>\n | If you withheld local income tax, you may enter it in box 17, and if you do, also complete boxes 16 and 18.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Notes:<\/b><\/p>\n Step 1: Collect the winner’s information from the winner<\/b><\/p>\n Request a completed Form W-9 to obtain the winner\u2019s correct TIN.<\/p>\n Step 2: Determine Reportability<\/b><\/p>\n 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.<\/p>\n Step 3: Calculate W-2G withholding requirements<\/b><\/p>\n Regular gambling withholding is generally 24% (31.58% for certain noncash payments when the payer pays the tax), and backup withholding\u2014when it applies\u2014is 24%.<\/p>\n Winnings paid to nonresident aliens follow a different regime\u2014typically a 30% withholding rate (subject to treaty reductions) and reporting on Form 1042-S, not Form W-2G.<\/p>\n Step 4: Complete the form<\/b><\/p>\n 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.<\/p>\n Step 5: Furnish copies to the recipient and the IRS<\/b><\/p>\n 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.<\/p>\n Note:<\/b> The next business day automatically becomes the updated due date if the statutory due date falls on a Saturday, Sunday, or legal holiday.<\/p>\n Step 6: Retain Records<\/b><\/p>\n 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.<\/p>\n Common mistakes that can lead to incorrect Form W-2G reporting (and potential IRS penalties for late or incorrect returns) include:<\/p>\n These errors can be substantially reduced by requesting the winner\u2019s TIN using Form W-9, keeping documentation supporting noncash prize FMV, and filing on time.<\/p>\n The following steps will help you understand how to maneuver through Tax1099 to file Form W-2G:<\/p>\n Step 1: Get on the Platform<\/b><\/p>\n Use your business EIN to log in or create a new Tax1099 profile.<\/p>\n Step 2: Load Your Data<\/b><\/p>\n Add W-2G information by inputting it in, downloading an Excel\/CSV file, or syncing your bookkeeping program.<\/p>\n Step 3: Run Checks<\/b><\/p>\n Run TIN match to valid TINs. Any inconsistencies between TINs and IRS records are automatically flagged by the system.<\/p>\n Step 4: Complete the Form<\/b><\/p>\n Fill out all necessary W-2G fields (1\u201310) and enter the payee’s information.<\/p>\n Step 5: Review and Correct Problems<\/b><\/p>\n To fix any missing or inaccurate information, scan the form before you hit submit.<\/p>\n Step 6: Online Submission<\/b><\/p>\n Tax1099 electronically submits the form with the IRS and sends copies to the recipients via USPS First Class mail or secure digital access.<\/p>\n Step 7: Store Records<\/b><\/p>\n Completed forms, along with audit-friendly logs, are safely stored for at least four years.<\/p>\n These examples show when Form W-2G is required and when 24% withholding may apply:<\/p>\n No. Only when winnings meet IRS thresholds or when withholding applies.<\/p>\n 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.<\/p>\n File Form W-2G when winnings are reportable or subject to withholding. If the winner doesn\u2019t provide a correct TIN and regular gambling withholding doesn\u2019t 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.<\/p>\n 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).<\/p>\n No. Boxes 13\u201318 (state\/local) are provided for your convenience and don\u2019t 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).<\/p>\n Not always\u2014winnings 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.<\/p>\n |