PDF《2017》

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). 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. Withholding There are two types of withholding on gambling winnings: (a) regular gambling withholding at 25% (33.33% for certain noncash payments) and (b) backup withholding at 28%. If a payment is already subject to regular gambling withholding, it isn'

t subject to backup withholding. Regular Gambling Withholding for Certain Games You may be required to withhold 25% of gambling winnings for federal income tax. This is referred to as regular gambling withholding. Withhold at the 25% rate if the winnings minus the wager are more than $5,000 and are from: Sweepstakes, Wagering pools, Lotteries (but not state-conducted lotteries), or 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. 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. 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. Apr 27,

2017 Cat. No. 27989I 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. 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 25% 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 25% 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 33.33% 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. Backup Withholding You may be required to withhold 28% 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), 25% 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 ........