W-2G Form Explained

What Is a Form W-2G?

A Form W-2G is an IRS tax reporting form that casinos, racetracks, and other gaming venues must provide to individuals who win a certain amount from gambling activities. The IRS Form lists the type of gambling, usually including keno, bingo, roulette, or horse racing. It also provides some evidence of the ratio of winnings to wager, and it reports the federal income tax withheld, if any. Regular gambling withholding does not apply to winnings from bingo, keno, or slot machines, but it does apply for poker tournaments in an additional case. For a Form W-2G issue to have withholding, the winnings minus the wager must exceed $5,000 and the winnings must be at least 300 times the wager.

Which Winnings Trigger a Form W-2G Slips

The specific amounts at which a venue must issue a Form W-2G for different games are not the same. The thresholds below are the ones printed on the current form:

• For bingo or slot machine winnings, the threshold is $1,200 or more.
• For keno winnings, the threshold is $1,500 or more, reduced by the amount of the wager.
• For poker tournament winnings, the threshold is more than $5,000, reduced by the buy-in or entry fee.

other gambling winnings, the threshold is $600 or more, but the payout must be at least 300 times the wager. This does not apply to winnings from keno, bingo, slot machines, and poker tournaments.

What the Gambling Venue Reports

When a gambling venue issues a Form W-2G, it reports to both the IRS and the winning individual. The form includes:

• The name of the casino or other gaming facility
• The taxpayer ID or employer ID of the gaming facility
• The type of gambling (e.g., slot machines, horse races, dog races, poker tournaments)
• The amount of the gambling winnings

The amount of the federal income tax withheld There may also be state taxpayer ID and state tax withheld, depending on the state. Comparison of gross winnings and net winnings after tax withholding. There may be a code indicating the odds on some or all the games, helpful in calculating to the individual taxpayer under certain tax rules.

Compare to Form 5754 for reporting gambling winnings distributed among multiple winners. If a W-2G Is Missing, Tax Would Not Be Eliminated. The gaming winners are responsible for recording and reporting their gambling transactions. The IRS has told taxpayers that they should keep any information provided on a W-2G Form when claiming gambling winnings and/or losses. Taxpayers should retain any information provided about their winnings even if the Form itself has not arrived.

Records to Keep as Proof. You should maintain your own records, as gaming venues may not retain complete documentation. The IRS says to keep a game receipt as proof of gambling losses. For other in-kind and cashback transactions, an explanation and source should not be counted on from other than personal records.

If the game transactions have occurred over more than one-year, tax planning may be affected, but that is out of scope of this explanation. When Withholding and Reporting Diverge. A key observation is that regular gambling withholding does not apply to winnings from slot machines or keno. The definitions are subject to change by the IRS. But the winnings exceptions exist as published until changed.

5 Key Takeaways.

• Form W-2G is triggered by different win amounts depending on the game.
• Bingo, slot machine, and keno payouts trigger at lower dollar levels than general poker winnings
• Withholding and reporting differ based on win-ratio and game
• If a W-2G is missing, the taxpayer must report gambling income.