Box 1. The payer must furnish a Form W-2G to you if you receive:
Generally, report all gambling winnings on the "Other income" line of Form 1040. You can deduct gambling losses as an itemized deduction, but you cannot deduct more than your winnings. Keep an accurate record of your winnings and losses, and be able to prove those amounts with receipts, tickets, statements, or similar items that you have saved. For additional information, see Pub. 17, Your Federal Income Tax, Pub. 505, Tax Withholding and Estimated Tax, and Pub. 525, Taxable and Nontaxable Income.
Box 2. Any federal income tax withheld on these winnings is shown in this box. Federal income tax must be withheld at the rate of 25% on certain winnings less the wager.
If you did not provide your federal identification number to the payer, the amount in this box may be subject to backup withholding at a 28% rate.
Include the amount shown in box 2 on your Form 1040 as federal income tax withheld.
Signature. You must sign Form W-2G if you are the only person entitled to the winnings and the winnings are subject to regular gambling withholding.
Other winners. Prepare Form 5754, Statement by Person(s) Receiving Gambling Winnings, if another person is entitled to any part of these winnings. Give Form 5754 to the payer.
[The following graphics have not been reproduced:
Copy A For Internal Revenue Service Center
Copy 1 For State Tax Department
Copy B Report this income on your federal tax return
Copy C For Winner's Records
Copy 2 Attach this copy for your state income tax return
Copy D For Payer]
General and specific form instructions are provided as separate products. The products you should use to complete Form W-2G are the 2007 General Instructions for Forms 1099, 1098, 5498, and W-2G and the 2007 Instructions for Forms W-2G and 5754. To order these instructions and additional forms, visit the IRS website at www.irs.gov, or call 1-800-TAX-FORM (1-800-829-3676).
Due dates. Furnish Copies B and C of this form to the winner by January 31, 2008.
File Copy A of this form with the IRS by February 28, 2008. If you file electronically, the due date is March 31, 2008.
Gambling withholding. You may be required to withhold federal income tax from cash or noncash gambling winnings. See the 2007 Instructions for Forms W-2G and 5754 for the rates.
Foreign winners. Use Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, to report gambling winnings paid to nonresident aliens and foreign corporations. See the Instructions for Form 1042-S. You may be required to withhold federal income tax at a 30% rate. See Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.
Form 5754. If the person receiving the winnings is not the actual winner or is a member of a group of winners, see the instructions for Form 5754, Statement by Person(s) Receiving Gambling Winnings, in the 2007 Instructions for Forms W-2G and 5754.
Need help? If you have questions about reporting on Form W-2G, call the information reporting customer service site toll free at 1-866-455-7438 or 304-263-8700 (not toll free). For TTY/TDD equipment, call 304-267-3367 (not toll free). The hours of operation are Monday through Friday from 8:30 a.m. to 4:30 p.m., Eastern time. The service site can also be reached by email at mccirp@irs.gov.