Reportable Gambling Winnings

You are required to report gambling winnings on a W-2G for if you meet one of the following criteria;

1) Winnings minus the wager are $600 or more

2) Your payout is at least 300 times the amount of your wager

Gambling Witholding

You may be required to with hold 25% of gambling winnings for federal income tax if your winnings minus the wager are $5,000 or more.

Please note: Regular gambling withholding is figured on the total amount of gross proceeds(the amount of winnings minus the amount wagered), and not merely on the amount in excess of $5,000.

Report the amount that you withheld in box 2 of Form W-2G.  Also file Form 945, Annual Return of Withheld Federal income Tax, to report all of your gambling withholding.