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Form W-2G – Certain Gambling Winnings 2021

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Report Certain Gambling Winnings with Form W-2G

Form W-2G is a tax form you need to report gambling winnings to the IRS. If you’ve won money from activities like poker tournaments, bingo, keno, or slot machines, you might get a W-2G from the payer. It shows your winnings and any federal tax withheld by the gambling establishment.

form w-2g certain gambling winnings template

Important Details About Form W-2G

The gambling establishment is responsible for issuing Form W-2G to any individual who wins over a certain amount. The establishment must also withhold federal income tax from certain gambling winnings.

Casinos and other gambling establishments must issue a W-2G to any individual who wins over $1,200 from bingo or slot machines, $1,500 from keno, and more than $5,000 from a poker tournament. The withholding percentage depends on the amount of the winnings and the type of gambling activity.

Remember that not all gambling winnings are subject to Form W-2G reporting or withholding. Winnings from table games like blackjack or roulette are not subject to W-2G reporting unless they exceed a certain amount and are not subject to withholding unless they exceed a certain threshold.

Exploring the W-2G Form Further

  • ✅ When you win at a casino or gambling place, ask the payer for a Form W-2G. This form is essential for your taxes, so keep it safe and use it when you file.
  • ✅ If you’ve lost your W-2G form or never got one from the gambling place, contact the payer for a duplicate. You can also get a copy from the IRS by calling, checking their website, or visiting a nearby office.
  • ✅ The IRS wants you to report your winnings on your federal income tax return. This form covers all the gambling winnings you must report to the IRS and yourself. Remember, you must report the total amount, not just what goes beyond the W-2G threshold.
  • ✅ Failing to report gambling winnings on your tax return can result in penalties and interest charges. You could also face an audit from the IRS. If you receive a W-2G for your gambling winnings, you must report those winnings on your tax return, even if the casino did not withhold any federal income tax.
  • ✅ So, what constitutes “certain gambling winnings”? This includes winnings from bingo or slot machines and poker tournament winnings. It’s not just limited to casinos – other gambling establishments, such as racetracks or wagering pools, also fall under this category.

Wagering pools

In racing including horse racing, dog racing, and jai alai, bettors can place wagers on which animal or player will win, place, or show. These forms of gambling are regulated in many countries and states, and the revenue generated from these events often goes towards supporting the racing or gaming industry and promoting responsible gambling.

Sweepstakes and lotteries

If you win a sweepstakes or a lottery, it’s important to report your winnings to the appropriate authorities for tax purposes. In the United States, any prize $600 and above from a sweepstakes or lottery must be reported to the Internal Revenue Service (IRS) on a W-2G form. The lottery or sweepstakes organization will also provide a copy of the W-2G to the winner and the IRS.

Bingo, keno, and slot machines

If you win a significant amount of money playing a form of gambling that involve selecting numbers and hoping that they match the ones drawn, such as bingo and keno, it’s important to report your winnings to the relevant tax authorities.

Poker tournaments

Keep accurate records of your poker tournament winnings and losses and any associated expenses, such as travel and lodging. Failing to report your gambling winnings can result in penalties and fines. Report honestly and accurately.

FAQ About Form W-2G: Certain Gambling Winnings

Form W-2G is used to report certain types of gambling winnings to the IRS. If you win a certain amount of money from gambling, the payer (such as a casino or racetrack) is required to report those winnings to the IRS using Form W-2G.

Some common types of gambling winnings that are reported on Form W-2G include winnings from slot machines, bingo games, keno, and certain types of poker tournaments. If you win $600 or more from gambling, the payer will typically issue a Form W-2G.
Yes, you must include your gambling winnings on your tax return, even if you do not receive a Form W-2G. If you received a Form W-2G, you will need to include the winnings on the appropriate line of your tax return, such as line 21 of Form 1040. If you did not receive a Form W-2G, you still need to report your winnings and losses on your tax return, using Form 1040 Schedule 1, which includes a line for “gambling winnings or losses.”

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