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Federal Free Printable 2019 Instructions for Forms  W-2G and 5754 for 2019 Federal Instructions for Forms W-2G and 5754, Certain Gambling Winnings and Statement by Person(s) Receiving Gambling Winnings

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Instructions for Forms W-2G and 5754, Certain Gambling Winnings and Statement by Person(s) Receiving Gambling Winnings
2019 Instructions for Forms W-2G and 5754

2019 Department of the Treasury Internal Revenue Service Instructions for Forms W-2G and 5754 Section references are to the Internal Revenue Code unless otherwise noted. Transactions Not Discussed Later; 2. Sweepstakes, Wagering Pools, and Lotteries; and3. Bingo, Keno, and Slot Machines. 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 also should use the 2019 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/OrderForms. Regular withholding rate. Effective for taxable years beginning after December 31, 2017, 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. Effective for taxable years beginning after December 31, 2017, 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 non-photo 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 Apr 26, 2018 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 new 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. 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: 1. The winnings (not reduced by the wager) are $1,200 or more from a bingo game or slot machine, 2. The winnings (reduced by the wager) are $1,500 or more from a keno game, 3. The winnings (reduced by the wager or buy-in) are more than $5,000 from a poker tournament, 4. The winnings (except winnings from bingo, slot machines, keno, and poker tournaments) reduced, at the option of the payer, by the wager are: a. $600 or more, and b. At least 300 times the amount of the wager, or Cat. No. 27989I 5. The winnings are subject to federal income tax withholding (either regular gambling withholding or backup withholding). Tax-Exempt Organizations Figure any backup withholding on the total amount of the winnings reduced, at the option of the payer, by the amount wagered. This means the total amount, not just the payments in excess of $600, $1,200, $1,500, or $5,000, is subject to backup withholding. Withholding Report the amount you withheld in box 4 of Form W-2G. Also file Form 945 to report all backup withholding. You may use Form W-9, Request for Taxpayer Identification Number and Certification, to request the TIN of the recipient. A tax-exempt organization conducting gaming activities may be required to withhold income tax and report on Form W-2G. See Pub. 3079, Tax-Exempt Organizations and Gaming. There are two types of withholding on gambling winnings: (a) regular gambling withholding at 24% (31.58% for certain noncash payments) and (b) backup withholding which is also at 24%. If a payment is already subject to regular gambling withholding, it isn't subject to backup withholding. See the following instructions for each type of gambling for detailed rules on backup withholding. Foreign Persons Payments of gambling winnings to a nonresident alien individual or a foreign entity aren't subject to reporting or withholding on Form W-2G. Generally, gambling winnings paid to a foreign person are subject to 30% withholding under sections 1441(a) and 1442(a) and are reportable on Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, and Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding. Winnings of a nonresident alien from blackjack, baccarat, craps, roulette, big-6 wheel, or a live dog or horse race in the United States from legal wagers initiated outside the United States in a parimutuel pool aren't subject to withholding or reporting. See Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign Entities. Regular Gambling Withholding for Certain Games You may be required to withhold 24% of gambling winnings for federal income tax. This is referred to as regular gambling withholding. Withhold at the 24% rate if the winnings minus the wager are more than $5,000 and are from: • Sweepstakes, • Wagering pools, • Lotteries, • Wagering transactions in a parimutuel pool with respect to horse races, dog races, or jai alai, if the winnings are at least 300 times the amount wagered, or • Other wagering transactions, if the winnings are at least 300 times the amount wagered. State Tax Information Regular gambling withholding doesn't apply to winnings from bingo, keno, or slot machines, nor does it apply to winnings from other wagering transactions if the winnings are $5,000 or less. However, see Backup Withholding, later. Boxes 13, 14, and 15 and Copies 1 and 2 are provided for your convenience only and don't have to be completed for the IRS. If you withheld state income tax on a payment of gambling winnings, you may enter it in box 15 of Form W-2G. If you do, also complete boxes 13 and 14. A state identification number (box 13) is assigned by each individual state. Regular gambling withholding is figured on the total amount of gross proceeds (the amount of winnings minus the amount wagered), not merely on the amount in excess of $5,000. If a state tax department requires you to send it a paper copy of Form W-2G, use Copy 1 for that purpose. Give Copy 2 to the winner for use in filing a state income tax return. Report the amount you withheld in box 4 of Form W-2G. Also file Form 945, Annual Return of Withheld Federal Income Tax, to report all your gambling withholding. Local Tax Information Noncash payments. You must take the fair market value (FMV) of a noncash payment, such as a car in a sweepstakes, wagering pool or lottery, into account for purposes of reporting and withholding. If the FMV exceeds $5,000, after deducting the price of the wager, the winnings are subject to 24% regular gambling withholding. The tax you must withhold is computed and paid under either of the following two methods. 1. The winner pays the withholding tax to the payer. In this case, the withholding is 24% of the FMV of the noncash payment minus the amount of the wager. 2. The payer pays the withholding tax. In this case, the withholding is 31.58% of the FMV of the noncash payment minus the amount of the wager. Boxes 16, 17, and 18 and Copies 1 and 2 are provided for your convenience only and don't have to be completed for the IRS. If you withheld local income tax on a payment of gambling winnings, you may enter it in box 17 of Form W-2G. If you do, also complete boxes 16 and 18. Form 5754 If the person receiving the winnings isn't the actual winner, or is a member of a group of winners, see Specific Instructions for Form 5754, later. Statements to Winners If you are required to file Form W-2G, you also must provide a statement to the winner. For information about the requirement to furnish a statement to the winner, see part M in the 2019 General Instructions for Certain Information Returns. You may furnish Copies B and C of Form W-2G to the winner. If you use method 2, enter the sum of the noncash payment and the withholding tax in box 1 of Form W-2G and the withholding tax paid by the payer in box 4. Backup Withholding 1. Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed Later You may be required to withhold 24% of gambling winnings (including winnings from bingo, keno, slot machines, and poker tournaments) for federal income tax. This is referred to as backup withholding. You should backup withhold if: • The winner doesn't furnish a correct taxpayer identification number (TIN), • Regular gambling withholding hasn't been withheld, and • The winnings are at least $600 and at least 300 times the wager (or the winnings are at least $1,200 from bingo or slot machines or $1,500 from keno, or more than $5,000 from a poker tournament). File Form W-2G for every person to whom you pay $600 or more in gambling winnings if the winnings are at least 300 times the amount of the wager. If the person presenting the ticket for payment is the sole owner of the ticket, complete Form W-2G showing the name, address, and TIN of the winner. If regular gambling withholding is required, the winner must sign Form W-2G, under penalties of perjury, stating that he or she is the sole owner and that the information listed on the form is correct. If more than one person shares in the winnings from a single wager, see Withholding and Forms W-2G for Multiple Winners, later. -2- Instructions for Forms W-2G and 5754 (2019) Box 8 or 10 Withholding You must withhold federal income tax from the winnings if the winnings minus the wager exceed $5,000 and the winnings are at least 300 times the wager. Withhold 24% of the proceeds (the winnings minus the wager). This is regular gambling withholding. Enter the cashier and/or window number making the winning payment. If the winner of reportable gambling winnings doesn't provide a TIN, you must backup withhold on any such winnings that aren't subject to regular gambling withholding. The backup withholding rate is identical to the regular withholding rate of 24%. That is, backup withholding of 24% applies if the winnings are at least $600 but not more than $5,000 and are at least 300 times the wager. Figure backup withholding on the amount of the winnings reduced, at the option of the payer, by the amount wagered. This is required information. Enter the TIN of the person receiving the winnings. For an individual this will be the social security number (SSN) or individual taxpayer identification number (ITIN). If the winner fails to give you a TIN, backup withholding applies. See Withholding, earlier. Box 9 Boxes 11 and 12 As verification of the name, address, and TIN of the person receiving the winnings, enter the identification numbers from two forms of identification. Acceptable forms of identification include a driver's license, passport, social security card, military identification card, tribal member identification card issued by a federally recognized Indian tribe, voter registration card, or completed and unmodified Form W-9. Enter the number and the state or jurisdiction. In some instances, the number may be the same number as in box 9. Identical Wagers Winnings from “identical wagers” are added together for purposes of reporting and withholding requirements. Two or more wagers are identical wagers if they are placed with the same payer and winning depends on the occurrence (or non-occurrence) of the same event or events. In the case of horse races, dog races, or jai alai, wagers also must be placed in the same parimutuel pool to be identical wagers. For example, multiple bets placed in a parimutuel pool with a single payer on the same horse to win a specific race are identical wagers. One of the two forms of identification that the recipient presents must include the recipient's photograph. Gaming establishments owned or licensed by a tribal government may waive the photo ID requirement for payees who are members of that federally recognized Indian tribe and present a tribal member identification card issued by the same tribal government. Wagers in a Single Parimutuel Pool in Horse Racing, Dog Racing, or Jai Alai All wagers in horse racing, dog racing, or jai alai 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 for withholding and reporting requirements. These types of wagers are not necessarily identical wagers. For example, two bets in a single show pool, one for Player X to show and the other for Player Y to show, are not identical wagers because winning on the two bets isn't contingent on the occurrence of the same event. However, if both bets are represented on a single ticket, then they must be aggregated to determine the amount of the wager. Boxes 13 Through 18 These boxes are provided for your convenience only and need not be completed for the IRS. See State Tax Information and Local Tax Information, earlier. Box 13. Enter the abbreviated name of the state and your state identification number. Box 14. Enter the amount of state winnings. Box 15. Enter the amount of state income tax withheld. Box 16. Enter the amount of local winnings. Box 1 Enter payments of $600 or more if the payment is at least 300 times the wager. Box 17. Enter the amount of local income tax withheld. Box 2 2. Sweepstakes, Wagering Pools, and Lotteries Box 18. Enter the name of your locality. File Form W-2G for each person to whom you pay $600 or more in gambling winnings from a sweepstakes, wagering pool, or lottery (including a state-conducted lottery) if the winnings are at least 300 times the amount of the wager. The wager must be subtracted from the total winnings to determine whether withholding is required and, at the option of the payer, to determine whether reporting is required. The wager must be subtracted at the time of the first payment. Enter the date of the winning event. This isn't the date the money was paid if it was paid after the date of the race (or game). Box 3 Enter the type of wager if other than a regular race bet, for example, Daily Double or Big Triple. Box 4 The requirements in this section apply to church raffles, charity drawings, etc. In the case of one wager for multiple raffle tickets, such as five for $1, the wager is considered as $.20 for each ticket. Enter any federal income tax withheld, whether regular gambling withholding or backup withholding. Box 5 Withholding Not applicable. You must withhold federal income tax from the winnings if the winnings minus the wager exceed $5,000. Withhold 24% of the proceeds (the winnings minus the wager). This is regular gambling withholding. If the winner of reportable gambling winnings doesn't provide a TIN, you must backup withhold on any such winnings that aren't subject to regular gambling withholding. that backup withholding rate is identical to the regular withholding rate of 24%. That is, backup withholding of 24% applies if the winnings are at least $600 but not more than $5,000 and are at least 300 times the wager. Figure backup withholding on the amount of the winnings reduced, at the option of the payer, by the amount wagered. Box 6 Enter the race (or game) applicable to the winning ticket. Box 7 Enter the amount of additional winnings from identical wagers. Instructions for Forms W-2G and 5754 (2019) -3- Boxes 11 and 12 Installment payments of $5,000 or less are subject to regular gambling withholding if the total proceeds from the wager will exceed $5,000. Except for winnings from state lotteries, as verification of the name, address, and TIN of the person receiving the winnings, enter the identification numbers from two forms of identification. Acceptable forms of identification include a driver's license, passport, social security card, military identification card, tribal member identification card issued by a federally recognized Indian tribe, voter registration card, or completed and unmodified Form W-9. Enter the number and the state or jurisdiction. In some instances, the number may be the same number as in box 9. If payments are to be made for the life of a person (or for the lives of more than one person), and it is actuarially determined that the total proceeds from the wager are expected to exceed $5,000, such payments are subject to 24% regular gambling withholding. When a third party makes the payments, for example, an insurance company handling the winnings as an annuity, that third party must withhold. When Paid One of the two forms of identification that the recipient presents must include the recipient's photograph. Gaming establishments owned or licensed by a tribal government may waive the photo ID requirement for payees who are members of that federally recognized Indian tribe and present a tribal member identification card issued by the same tribal government. A payment of winnings is considered made when it is paid, either actually or constructively, to the winner. Winnings are constructively paid when they are credited to or set apart for that person without any substantial limitation or restriction on the time, manner, or condition of payment. However, if not later than 60 days after the winner becomes entitled to the prize, the winner chooses the option of a lump sum or an annuity payable over at least 10 years, the payment of winnings is considered made when actually paid. If the winner chooses an annuity, file Form W-2G each year to report the annuity paid during that year. Boxes 13 Through 18 These boxes are provided for your convenience only and need not be completed for the IRS. See State Tax Information and Local Tax Information , earlier. Identical Wagers Winnings from "identical wagers" are added together for purposes of the reporting and withholding requirements. Two or more wagers are identical wagers if they are placed with the same payer and winning depends on the occurrence (or non-occurrence) of the same event or events. Box 13. Enter the abbreviated name of the state and your state identification number. Box 1 Box 17. Enter the amount of local income tax withheld. Box 14. Enter the amount of state winnings. Box 15. Enter the amount of state income tax withheld. Box 16. Enter the amount of local winnings. Enter payments of $600 or more if the payment is at least 300 times the wager. Box 18. Enter the name of your locality. 3. Bingo, Keno, and Slot Machines Box 2 File Form W-2G for every person to whom you pay $1,200 or more in gambling winnings from bingo or slot machines, or $1,500 or more from keno after the price of the wager for the winning keno game is deducted. If the winnings aren't paid in cash, the FMV of the item won is considered the amount of the winnings. Total all winnings from all wagers made during a single bingo or keno game to determine whether the winnings are reportable. Winnings and losses from other wagering transactions aren't to be taken into account in arriving at the $1,200 or $1,500 figure. Enter the date of the winning transaction, such as the date of the drawing of the winning number. This might not be the date the winnings are paid. Box 3 Enter the type of wager (such as raffle or 50-50 drawing) or the name of the lottery (such as Instant, Big 50, Baker's Dozen, or Powerball) and the price of the wager ($.50, $1, etc.). Withholding Box 4 Regular gambling withholding doesn't apply to winnings from bingo, keno, or slot machines. However, if the recipient of reportable gambling winnings from bingo, keno, or slot machines doesn't provide a TIN, you must backup withhold. That is, if the winnings are at least $1,200 from bingo or slot machines or $1,500 from keno, backup withholding of 24% applies to the amount of the winnings reduced, at the option of the payer, by the amount wagered. Enter any federal income tax withheld, whether regular gambling withholding or backup withholding. Box 5 For a state lottery, enter the ticket number or other identifying number. Boxes 6, 8, and 10 Box 1 Not applicable. Enter payments of $1,200 or more from bingo or slot machines or payments of $1,500 or more from keno. Box 7 Enter the amount of additional winnings from identical wagers. You may use the optional aggregate reporting method to report these payments. Under this method, aggregate multiple payments 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 Form W-2G. A “gaming day” is a 24-hour period that ends at a particular time chosen by the gaming establishment (generally when the establishment is closed or when business is slowest, such as between 3:00 a.m. and 6:00 a.m.). On December 31st, all open information reporting periods must close at 11:59 p.m. to end by the end of the calendar year. On January 1st, all information reporting periods must begin at 12:00 a.m. For more details and Box 9 This is required information. Enter the TIN of the person receiving the winnings. For an individual this will be the social security number (SSN) or individual taxpayer identification number (ITIN). If the winner fails to give you a TIN, backup withholding applies. See Withholding under Sweepstakes, Wagering Pools, and Lotteries, earlier. -4- Instructions for Forms W-2G and 5754 (2019) recordkeeping requirements, see Regulations section 1.6041-10(g). Box 18. Enter the name of your locality. Box 2 File Form W-2G for each person to whom you pay more than $5,000 in winnings, reduced by the amount of the wager or buy-in, from each poker tournament you have sponsored. Winnings and losses of the participant from other poker tournaments you have sponsored during the year aren't taken into account in arriving at the $5,000 amount. 4. Poker Tournaments Enter the date of the winning transaction. Box 3 Enter the type of wager (that is, bingo, keno, or slot machines) and the amount of the wager. Enter the ticket number, card number (and color, if applicable), machine serial number, or any other information that will help identify the winning transaction. Withholding and backup withholding. If you file Form W-2G for the person to whom you pay more than $5,000 in net winnings from a poker tournament, and provide a copy of Form W-2G to such person, regular gambling withholding doesn't apply to the winnings. However, if the person who wins more than $5,000 doesn't provide a TIN, you must apply backup withholding to the full amount of the winnings from the tournament. The backup withholding rate is identical to the regular withholding rate of 24%. Net winnings of $5,000 or less aren't subject to reporting, withholding, or backup withholding. Boxes 6 and 7 Box 1 Box 4 Enter any backup withholding. Box 5 Enter payments of more than $5,000 in net gambling winnings from a poker tournament. Not applicable. Box 8 Box 2 Enter the initials of the person paying the winnings. Enter the date of the poker tournament. Box 9 Box 3 This is required information. Enter the TIN of the person receiving the winnings. For an individual this will be the social security number (SSN) or individual taxpayer identification number (ITIN). If the winner fails to give you a TIN, backup withholding applies. See Withholding under Bingo, Keno, and Slot Machines, earlier. Enter “poker tournament” in the entry space. Box 4 Enter zero as the amount, unless the winning person hasn't provided a TIN. If the winning person hasn't provided a TIN, enter the backup withholding amount. Box 10 Box 5 Enter the location of the person paying the winnings, if applicable. Enter the name of the tournament and its sponsor. Boxes 11 and 12 Boxes 6 Through 8 and Box 10 As verification of the name, address, and TIN of the person receiving the winnings, enter the identification numbers from two forms of identification. Acceptable forms of identification include a driver's license, passport, social security card, military identification card, tribal member identification card issued by a federally recognized Indian tribe, voter registration card, or completed and unmodified Form W-9. Enter the number and the state or jurisdiction. In some instances, the number may be the same number as in box 9. Not applicable. Box 9 This is required information. Enter the TIN of the person receiving the winnings. For an individual this will be the social security number (SSN) or individual taxpayer identification number (ITIN). If the winner fails to give you a TIN, backup withholding applies. See Withholding and backup withholding, earlier. One of the two forms of identification that the recipient presents must include the recipient's photograph. Gaming establishments owned or licensed by a tribal government may waive the photo ID requirement for payees who are members of that federally recognized Indian tribe and present a tribal member identification card issued by the same tribal government. Boxes 11 and 12 As verification of the name, address, and TIN of the person receiving the winnings, enter the identification numbers from two forms of identification. Acceptable forms of identification include a driver's license, social security card, or voter registration. Enter the number and the state or jurisdiction. In some instances, the number may be the same number as in box 9. Boxes 13 Through 18 These boxes are provided for your convenience only and need not be completed for the IRS. See State Tax Information and Local Tax Information, earlier. Boxes 13 Through 18 These boxes are provided for your convenience only and need not be completed for the IRS. See State Tax Information and Local Tax Information, earlier. Box 13. Enter the abbreviated name of the state and your state identification number. Box 13. Enter the abbreviated name of the state and your state identification number. Box 14. Enter the amount of state winnings. Box 15. Enter the amount of state income tax withheld. Box 14. Enter the amount of state winnings. Box 16. Enter the amount of local winnings. Box 15. Enter the amount of state income tax withheld. Box 17. Enter the amount of local income tax withheld. Instructions for Forms W-2G and 5754 (2019) Box 16. Enter the amount of local winnings. -5- winners. In addition, if regular gambling withholding is required, the form must be signed, under penalties of perjury, and dated by the person receiving the winnings. Box 17. Enter the amount of local income tax withheld. Box 18. Enter the name of your locality. The form must be returned to the payer for preparation of Form W-2G for each of the persons listed as winners. Forms W-2G may be issued immediately or by January 31 following the year of the payment. Specific Instructions for Form 5754 Use Form 5754, Statement by Person(s) Receiving Gambling Winnings, to prepare Form W-2G only when the person receiving gambling winnings subject to reporting or withholding isn't the actual winner or is a member of a group of two or more people sharing the winnings, such as by sharing the proceeds of the same winning ticket. The payer is required to file Forms W-2G based on Form 5754. The person receiving the winnings must furnish all the information required by Form 5754. However, a recipient of winnings from a state-conducted lottery need not provide identification other than his or her taxpayer identification number (TIN). Part I lists the identification of the person to whom the winnings are paid, and Part II lists the actual winners, their respective shares of the winnings, and any additional winnings from identical wagers. Identical wagers are defined earlier in the Specific Instructions for Form W-2G. In Part II, the person receiving the winnings must provide the name, address, TIN, respective share of the winnings, and additional winnings from identical wagers for each of the Do not send Form 5754 to the IRS. Keep it for your records. Withholding and Forms W-2G for Multiple Winners If more than one person shares in the winnings from a single wager, the total amount of the winnings (minus the amount wagered) will determine the amount of the proceeds for purposes of reporting and withholding. Do not allocate winnings to each winner before determining whether the withholding or reporting thresholds were reached. For example, E purchases a sweepstakes ticket for $1 on behalf of himself and S, who contributes an equal amount of the ticket price and who will share equally in any winnings. The ticket wins $5,002. Because the winnings ($5,002 - $1 = $5,001) are more than $5,000, you must withhold 24% of $5,001. You must prepare Form W-2G for E and a separate Form W-2G for S using the information furnished to you on Form 5754. -6- Instructions for Forms W-2G and 5754 (2019)
Extracted from PDF file 2019-federal-inst-w-2g-and-5754.pdf, last modified October 2018

More about the Federal Inst W-2G and 5754 Individual Income Tax Estimated TY 2019

This form contains instructions to filing forms W-2G and 5754 relating to gambling winnings. Refer to this form if you need instructions regarding the filing and withholding of gambling winnings.

We last updated the Instructions for Forms W-2G and 5754, Certain Gambling Winnings and Statement by Person(s) Receiving Gambling Winnings in February 2019, so this is the latest version of Inst W-2G and 5754, fully updated for tax year 2018. You can download or print current or past-year PDFs of Inst W-2G and 5754 directly from TaxFormFinder. You can print other Federal tax forms here.


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Related Federal Individual Income Tax Forms:

TaxFormFinder has an additional 774 Federal income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Federal Inst W-2G and 5754.

Form Code Form Name
Inst W-9 Instructions for the Requestor of Form W-9, Request for Taxpayer Identification Number and Certification
Inst W-2 and W-3 Instructions for Forms W-2 and W-3, Wage and Tax Statement and Transmittal of Wage and Tax Statements
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Form Sources:

The Internal Revenue Service usually releases income tax forms for the current tax year between October and January, although changes to some forms can come even later. We last updated Federal Inst W-2G and 5754 from the Internal Revenue Service in February 2019.

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Inst W-2G and 5754 is a Federal Individual Income Tax form. While most taxpayers have income taxes automatically withheld every pay period by their employer, taxpayers who earn money that is not subject to withholding (such as self employed income, investment returns, etc) are often required to make estimated tax payments on a quarterly basis. Failure to make correct estimated payments can result in interest or penalties.

About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!


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Source: http://www.taxformfinder.org/federal/inst-w-2g-and-5754