Form W-2G--Certain Gambling Winnings

2018

Department of the Treasury
Internal Revenue Service

Instructions for Forms
W-2G and 5754

New Rules for Determining the Amount of the
Wager for Certain Gambling Winnings

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.

What’s New

New 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
now 24%. This change affects the rate listed 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. See P.L. 115-97, Title I,
Subtitle A, Part I, Section 11001(a) for more information.

New 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 now 24%.
This change affects the rate listed 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. See P.L. 115-97, Title I, Subtitle A, Part I,
Section 11001(a) for more information.

Expanded Payee Identification Rules

Except for a payee of winnings of a state-conducted lottery, 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 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 other 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 new rules affect boxes 11 and 12 under the
instructions for Horse Racing, Dog Racing, Jai Alai, and Other
Wagering Transactions Not Discussed Later and for
Sweepstakes, and Wagering Pools, and Lotteries. See
Regulations section 31.3402(q) -1(e)(1)(v), (2)(ii), and (3).

Jan 23, 2018

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 new rules affect boxes 1 and 4 under the
instructions for Horse Racing, Dog Racing, Jai Alai, and Other
Wagering Transactions Not Discussed Later. See Regulations
section 31.3402(q)-1(c)(1)(ii).
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. See Regulations
section 31.3402(q)-1(c)(1)(iii)(A).

Reminders

In addition to these specific instructions, you should also use the
2018 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.

Payee identification rules for bingo, keno, and slot machines. A payee of bingo, keno, or slot machine winnings must
present two forms of identification, one of which must include the
payee's photo and one of which may be a properly completed
Form W-9. For more information, see the instructions for boxes
11 and 12 under Bingo, Keno, and Slot Machines.
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 W-2G with
the IRS. You must provide a statement to the winner (Copies B
and C of Form W-2G).

Cat. No. 27989I

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.

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.
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.

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
5. The winnings are subject to federal income tax
withholding (either regular gambling withholding or backup
withholding).

Backup Withholding

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).
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.

Tax-Exempt Organizations

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.

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.

Withholding

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 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 pari-mutuel 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 pari-mutuel 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. A noncash payment, such as a car in a
sweepstakes, wagering pool or lottery, must be taken into
account at its fair market value (FMV) 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.

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.

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Instructions for Forms W-2G and 5754 (2018)

Form 5754

Box 2

Statements to Winners

Box 3

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.

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).

Enter the type of wager if other than a regular race bet, for
example, Daily Double or Big Triple.

If you are required to file Form W-2G, you must also provide a
statement to the winner. For information about the requirement
to furnish a statement to the winner, see part M in the 2018
General Instructions for Certain Information Returns. You may
furnish Copies B and C of Form W-2G to the winner.

Box 4

Enter any federal income tax withheld, whether regular gambling
withholding or backup withholding.

1. Horse Racing, Dog Racing, Jai Alai, and Other
Wagering Transactions Not Discussed Later

Box 5

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.

Not applicable.

Box 6

Enter the race (or game) applicable to the winning ticket.

Box 7

Enter the amount of additional winnings from identical wagers.

Box 8 or 10

Withholding

Enter the cashier and/or window number making the winning
payment.

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.

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, earlier.

If the winner of reportable gambling winnings doesn't provide
a TIN, you must backup withhold at the rate of 24% on any such
winnings that aren't subject to 24% regular gambling
withholding. That is, backup withholding 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.

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

Box 17. Enter the amount of local income tax withheld.

Enter payments of $600 or more if the payment is at least 300
times the wager.

Instructions for Forms W-2G and 5754 (2018)

Box 18. Enter the name of your locality.

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2. Sweepstakes, Wagering Pools, and Lotteries

Box 4

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 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

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.

Not applicable.

Withholding

Enter the amount of additional winnings from identical wagers.

Box 7

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 at the
rate of 24% on any such winnings that aren't subject to 24%
regular gambling withholding. That is, backup withholding
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 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.

Boxes 11 and 12

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.

Installment payments of $5,000 or less are subject to regular
gambling withholding if the total proceeds from the wager will
exceed $5,000.
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.

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.

When Paid

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.

Box 13. Enter the abbreviated name of the state and your state
identification number.

Identical Wagers

Box 14. Enter the amount of state winnings.

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 15. Enter the amount of state income tax withheld.
Box 16. Enter the amount of local winnings.
Box 17. Enter the amount of local income tax withheld.
Box 18. Enter the name of your locality.

Box 1

3. Bingo, Keno, and Slot Machines

Enter payments of $600 or more if the payment is at least 300
times the wager.

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.

Box 2

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.).
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Instructions for Forms W-2G and 5754 (2018)

Withholding

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.

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 applies to the amount of
the winnings reduced, at the option of the payer, by the amount
wagered.

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.

Box 1

Enter payments of $1,200 or more from bingo or slot machines
or payments of $1,500 or more from keno.

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.

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
recordkeeping requirements, see Regulations section
1.6041-10(g).

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 17. Enter the amount of local income tax withheld.
Box 18. Enter the name of your locality.

4. Poker Tournaments

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.

Box 2

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.

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. Net winnings of $5,000 or less aren't subject to
reporting, withholding, or backup withholding.

Box 4

Enter any backup withholding.

Box 5

Enter the ticket number, card number (and color, if applicable),
machine serial number, or any other information that will help
identify the winning transaction.

Box 1

Enter payments of more than $5,000 in net gambling winnings
from a poker tournament.

Boxes 6 and 7

Not applicable.

Box 2

Box 8

Enter the date of the poker tournament.

Enter the initials of the person paying the winnings.

Box 3

Box 9

Enter “poker tournament” in the entry space.

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.

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

Boxes 11 and 12

Not applicable.

Enter the name of the tournament and its sponsor.

Enter the location of the person paying the winnings, if
applicable.

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

Instructions for Forms W-2G and 5754 (2018)

Box 9

This is required information. Enter the TIN of the person
receiving the winnings. For an individual this will be the social
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winnings from a state-conducted lottery need not provide
identification other than his or her taxpayer identification number
(TIN).

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.

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.

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.

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
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.

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.

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.

Box 13. Enter the abbreviated name of the state and your state
identification number.

Do not send Form 5754 to the IRS. Keep it for your records.

Box 14. Enter the amount of state winnings.

Withholding and Forms W-2G for Multiple
Winners

Box 15. Enter the amount of state income tax withheld.
Box 16. Enter the amount of local winnings.

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.

Box 17. Enter the amount of local income tax withheld.
Box 18. Enter the name of your locality.

Specific Instructions for Form 5754

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.

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

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Instructions for Forms W-2G and 5754 (2018)