The IRS has released the 2018 Instructions for Form W-2G. Form W-2G is used to report gambling winnings and any federal income tax withheld on those winnings.
There are a number of changes from the previous revision:
- New regular withholding rate
- Effective for taxable years beginning after December 31, 2017, the withholding rate is now 24%
- New backup withholding rate
- Effective for taxable years beginning after December 31, 2017, the backup withholding rate is now 24%
- The payee identification rules have been expanded to now required the payee to present two forms of identification, one of which must include the payee’s photo
- There are also new rules for determining the amount of the wage for certain gambling winnings
To view the 2018 W-2G Instructions, please click here.
About the Author
Adam Rivera is a member of the Regulatory Analysis Team's Direct Tax division at Sovos. His main areas of focus are Federal and State Tax Withholding and Affordable Care Act (ACA) Reporting. Prior to Sovos, Adam worked as a legislative aide in the Florida House of Representatives. He also has experience in securities law, focusing on securities litigation and researching emerging crowdfunding methods of raising capital. Adam is a member of both the Massachusetts and Florida Bars. He earned his B.A. from the University of Florida and his J.D. from the University of Miami.More Content by Adam Rivera