Form W-2G: 2026 Gambling Winnings Reporting Threshold

“File this form to report gambling winnings and any federal income tax withheld on those winnings. The requirements for reporting and withholding depend on:
the type of gambling,
the amount of the gambling winnings, and
generally the ratio of the winnings to the wager.”

“If you are required to file Form W-2G, you must also provide a statement to the winner.”

“Form W-2G and its instructions have been converted from an annual revision to continuous use.”

“For calendar years after 2025, the minimum threshold amount for reporting certain payments and backup withholding on certain information returns, including the Form W-2G, will be adjusted yearly for inflation. The minimum threshold amount for payments made in calendar year 2026 is $2,000. See Pub. 1099 and IRS.gov.InflationAdjustment for future years threshold amounts.”

“Report gambling winnings on Form W-2G if the winnings are subject to federal income tax withholding (either regular gambling withholding or backup withholding). See Pub. 1099 and IRS.gov.InflationAdjustment for information on the applicable reporting threshold for each type of gambling winnings.”

“****The amount is adjusted for inflation every year. Go to IRS.gov/InflationAdjustment for the current year inflation-adjusted amount.”

“Total all winnings from all wagers made during a single bingo or keno game to determine whether the winnings are reportable. Winnings and losses from other wagering transactions aren’t to be taken into account when determining the applicable reporting threshold.”

“Information reporting on gambling winnings reported on Form W-2G was governed by the same statutory threshold, but regulations under section 6041 provided that the dollar threshold was $1,200 for a single winning from bingo and slot machine play and $1,500 for a single winning from keno.”

“The statutory amendments made by the OBBBA change the dollar thresholds for all of these payments to be $2,000 in a calendar year for payments made after December 31, 2025, with an adjustment for inflation in calendar years after 2026.”

“Because this is a change in the statute, these dollar thresholds apply regardless of these proposed regulations.”

“In the absence of the proposed regulations, the new dollar threshold of $2,000 would still apply for reporting winnings from keno, bingo, and slot machine play.”

“Some taxpayers and practitioners may apply the lower, outdated thresholds in the regulations despite the new, higher thresholds in the statutes.”

“Accordingly, the proposed regulations would modify Sec. 1.6041-10 to provide that the threshold for reporting payments of winnings from bingo, keno, and slot machine play is $2,000 for calendar year 2026, adjusted for inflation in subsequent calendar years as provided in section 6041(h). The existing limitations related to the amount wagered in each of the affected games would be maintained under the proposed regulations.”

“A gambling winning (other than a winning from bingo, keno, or slot machines) is a reportable gambling winning only if the amount paid with respect to the wager equals or exceeds the dollar amount in effect for the calendar year under section 6041(a) and (h) and if the proceeds are at least 300 times as large as the amount wagered.”

“31.3406(g)-2 are proposed to apply to payments made on or after January 1, 2026.”

“Report gambling winnings on Form W-2G if:
[…]
The winnings (not reduced by the wager) are $1,200 or more from a bingo game or slot machine;
2. The winnings (reduced by the wager) are $1,500 or more from a keno game;
3. The winnings (reduced by the wager or buy-in) are more than $5,000 from a poker tournament;
4. The winnings (except winnings from bingo, slot machines, keno, and poker tournaments) reduced, at the option of the payer, by the wager are:
a. $600 or more, and
b. At least 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).”

“There are two types of withholding on gambling winnings: (a) regular gambling withholding at 24% (31.58% for certain noncash payments), and (b) backup withholding that is also at 24%. If a payment is already subject to regular gambling withholding, it isn’t subject to backup withholding.”

“Withhold at the 24% rate if the winnings minus the wager are more than $5,000 and are from:
Sweepstakes;
Wagering pools;
Lotteries;
Wagering transactions in a parimutuel pool with respect to horse races, dog races, or jai alai, if the winnings are at least 300 times the amount wagered; or
Sports wagering and other wagering transactions, 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.”

“If the FMV exceeds $5,000, after deducting the price of the wager, the winnings are subject to 24% regular gambling withholding.”

“You should backup withhold if:
The winner doesn’t furnish a correct taxpayer identification number (TIN),
Regular gambling withholding hasn’t been withheld, and
The winnings meet or exceed the applicable reporting threshold and (if applicable) are at least 300 times the wager.”

“Payments of gambling winnings to a nonresident alien individual or a foreign entity aren’t subject to reporting or withholding on Form W-2G. Generally, gambling winnings paid to a foreign person are subject to 30% withholding under sections 1441(a) and 1442(a) and are reportable on Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, and Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding.”

“A payee of gambling winnings meeting the reporting thresholds for bingo, keno, and slot machines, and a payee of gambling winnings meeting the withholding thresholds from horse racing, dog racing, jai alai, sweepstakes, wagering pools, lotteries, sports wagering, and certain other wagering transactions, but not from a state-conducted lottery, must present two forms of identification, one of which must include the payee’s photo.”

“Box 1. The payer must furnish a Form W-2G to you if you receive gambling winnings subject to federal income tax withholding. See Pub. 1099 for information on the applicable reporting threshold for each type of gambling winnings.”

“Box 4. Any federal income tax withheld on these winnings is shown in this box. Federal income tax must be withheld on certain winnings less the wager. Certain winnings that are not subject to regular gambling withholding may be subject to backup withholding if you did not provide your taxpayer identification number (TIN) to the payer.”

“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. Return the signed form to the payer, who will give you your copies. Other winners. Prepare Form 5754 if another person is entitled to any part of these winnings.”

“Generally, report all gambling winnings under the “Other income” line of Schedule 1 (Form 1040). You can deduct 90% of your gambling losses as an itemized deduction, but the amount you deduct cannot be more than the amount of your winnings.”

“* The due date is March 31 if filed electronically.”

“If any filing due date in these instructions falls on a Saturday, Sunday, or a legal holiday, you will be considered to have timely filed if you file by the next day that is not a Saturday, Sunday, or a legal holiday. Legal holidays for this purpose are legal holidays in the District of Columbia or a statewide legal holiday where the return is required to be filed.”

“The payor must furnish the statement to the payee on or before January 31st of the year following the calendar year in which payment of the reportable gambling winnings is made.”