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Instructions for Forms
W-2G and 5754
(Rev. January 2021)
Department of the Treasury
Internal Revenue Service
Section references are to the Internal Revenue Code unless
otherwise noted.
Future Developments
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.
Reminders
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.
•
Backup withholding.
•
Electronic reporting requirements.
•
Penalties.
•
When and where to file.
•
Taxpayer identification numbers.
•
Statements to recipients.
•
Corrected and void returns.
•
Other general 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.
Payee identification rules. 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 ma-
chine 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.
Specific Instructions for Form W-2G
File Form W-2G, Certain Gambling Winnings, to report gambling
winnings and any federal income tax withheld on those winnings.
The requirements for reporting and withholding depend on the
type of gambling, the amount of the gambling winnings, and
generally the ratio of the winnings to the wager. File Form W-2G
with the IRS. You must provide a statement to the winner
(Copies B and C of Form W-2G).
The types of gambling are discussed in these instructions
under the following four headings.
1. Horse Racing, Dog Racing, Jai Alai, and Other Wagering
Transactions Not Discussed Later.
2. Sweepstakes, Wagering Pools, and Lotteries.
3. Bingo, Keno, and Slot Machines.
4. Poker Tournaments.
Reportable Gambling Winnings
Report gambling winnings on Form W-2G if:
Feb 18, 2021
Cat. No. 27989I