Form W-2G, Certain Gambling Winnings, is the form a casino, lottery, racetrack, sportsbook or other payer gives you when your winnings meet the IRS reporting threshold or have tax withheld. Box 1 shows the winnings and box 4 the federal income tax withheld. You report gambling winnings on the Other income line of Schedule 1, and the tax in box 4 counts as tax already paid.
The rules changed for 2026, both on when you get the form and on how much of your losses you can deduct. Everything below is from the IRS January 2026 revision of Form W-2G and its instructions, as of October 2026.
The 2026 threshold change
For calendar years after 2025, the minimum threshold for reporting certain payments and backup withholding on information returns, including the W-2G, is adjusted yearly for inflation. For payments made in 2026, the minimum threshold is $2,000. The IRS points to Pub. 1099 and its inflation adjustment page for the threshold that applies to each type of gambling.
The form is about reporting, not about whether you owe tax. The instructions to winners say to report all gambling winnings, generally, on Schedule 1, whether or not you got a W-2G.
When 24% is withheld
| Situation | Withholding |
|---|---|
| Winnings minus the wager are more than $5,000 from sweepstakes, wagering pools or lotteries | 24% regular gambling withholding |
| Parimutuel horse, dog or jai alai winnings over $5,000 and at least 300 times the wager | 24% regular gambling withholding |
| Sports wagering and other wagering over $5,000 and at least 300 times the wager | 24% regular gambling withholding |
| Bingo, keno and slot machines | No regular gambling withholding, but backup withholding can apply |
| Certain noncash prizes | 31.58% in some cases |
Rates are as of October 2026. Backup withholding is also 24%, and applies if you don't give the payer a correct taxpayer identification number, regular withholding hasn't been taken, and the winnings meet the threshold. A payment already subject to regular gambling withholding isn't also subject to backup withholding.
Withholding is on the whole win
One detail from the payer instructions surprises winners: regular gambling withholding is figured on the total gross proceeds, the winnings minus the amount wagered, not just on the part above $5,000. Cross the line by a dollar and the 24% applies to the whole amount. The payer reports what it withheld in box 4 and files Form 945 for all its gambling withholding.
The change people miss: 90% of losses
The instructions to winner on the 2026 form say you can deduct 90% of your gambling losses as an itemized deduction, and the deduction can't be more than your winnings. That means even a year where losses equal winnings can leave some winnings taxed, because only 90% of the losses come off. And it's an itemized deduction, so it only helps if you itemize. Keep an accurate record of winnings and losses, with receipts, tickets and statements to prove them.
What the W-2G boxes show
| Box | What it shows |
|---|---|
| 1 | Reportable winnings |
| 2 | Date of the winning event, not the date you were paid |
| 3 | Type of wager, if other than a regular race bet |
| 4 | Federal income tax withheld, regular or backup |
| 9 | Winner's taxpayer identification number |
| 13 | Payer's state and state identification number |
| 17 | Local income tax withheld |
How to report a W-2G
- Add up winnings from all your W-2Gs and any other gambling winnings you had during the year.
- Report them under Other income on Schedule 1 (Form 1040).
- Include box 4 on Form 1040 or 1040-SR as federal income tax withheld.
- If you itemize, deduct 90% of your gambling losses, capped at your winnings, with records to back it up.
- Use the state boxes for your state return if state tax was withheld.
Sweepstakes and noncash prizes
Winnings don't have to be cash. For a noncash prize such as a car in a sweepstakes, wagering pool or lottery, the payer uses its fair market value. If that value is over $5,000 after deducting the wager, 24% regular gambling withholding applies, and either you pay the withholding to the payer, or the payer pays it for you at 31.58% of the value minus the wager. In the second case, box 1 shows the prize plus the tax the payer covered, and box 4 shows that tax. Either way, the full value counts as winnings, so plan for the tax on a prize you can't spend.
Signing and shared winnings
If you're the only person entitled to the winnings and regular gambling withholding applies, you sign the W-2G under penalties of perjury and return it to the payer, who gives you your copies. If someone else is entitled to part of the winnings, you prepare Form 5754 and give it to the payer, who issues a W-2G to each person listed. Form 5754 isn't sent to the IRS. W-2Gs may be issued straight away or by January 31 of the following year.
Foreign winners
Gambling winnings paid to a nonresident alien individual or a foreign entity aren't reported or withheld on a W-2G. Generally they're subject to 30% withholding and reported on Form 1042 and Form 1042-S instead, with exceptions for certain table games such as blackjack, craps and roulette.
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The verdict
A W-2G is proof of winnings and of tax already paid, not your final bill. For 2026, expect fewer small forms because of the $2,000 minimum threshold, but report every win anyway. The bigger change is the 90% limit on losses: keep your records, itemize if it helps, and don't assume a break-even year is a tax-free one.
Frequently asked questions
What is Form W-2G?
It's the form payers give you to report certain gambling winnings and any federal income tax withheld on them.
What is the W-2G threshold for 2026?
For payments made in 2026, the minimum threshold amount is $2,000, adjusted yearly for inflation after that.
How much tax is withheld on gambling winnings?
Regular gambling withholding is 24% on certain winnings over $5,000, as of October 2026. Backup withholding is also 24%.
Can I deduct gambling losses against W-2G winnings?
You can deduct 90% of your gambling losses as an itemized deduction, but not more than your winnings.
Do I report gambling winnings without a W-2G?
Yes. The instructions say to report all gambling winnings, generally on the Other income line of Schedule 1.
