Form W-2G and your winnings.

What Form W-2G does

A payer files Form W-2G, Certain Gambling Winnings, to report gambling winnings and any federal income tax withheld. You, the winner, get Copies B and C. A form is required when the winnings are subject to federal income tax withholding, either regular gambling withholding or backup withholding. Whether a win triggers one depends on the type of gambling, the amount and, for most wagering, the ratio of winnings to the wager.

The reporting level for 2026

Form W-2G and its instructions say that thresholds for information returns, including the W-2G, are adjusted yearly for inflation and that the minimum threshold amount for payments made in calendar year 2026 is $2,000. Pub. 1099 (2026) gives the general level for W-2G as $2,000 or more, and adds that for some wagering the winnings must also be at least 300 times the wager. Before 2026, Pub. 1099 (2025) listed $600 generally, $1,200 or more from bingo or slot machines and $1,500 or more from keno. The 2026 instructions do not repeat per-game figures, so ask the payer which level applies if your payout is near the line.

The 300 times rule

For lotteries, sweepstakes, wagering pools, pari-mutuel wagering on horses, dogs and jai alai, sports wagering and other wagering transactions, the payer files only if the winnings are at least 300 times the amount of the wager. For a lottery, the wager is subtracted from the winnings to decide whether withholding applies, and at the payer’s option to decide whether reporting is required. Winnings from identical wagers (same payer, same event or events) are added together. Bingo, keno and slot machine winnings do not use the 300 times test: keno winnings are measured after the wager is subtracted, and a poker tournament is measured on net winnings after the buy-in.

Withholding

Regular gambling withholding is 24% of the proceeds (winnings minus the wager) when the proceeds are more than $5,000 and come from sweepstakes, wagering pools, lotteries, or, if the winnings are at least 300 times the wager, pari-mutuel wagering or sports wagering and other wagers. It applies to the full proceeds, not only the part over $5,000. Regular withholding does not apply to bingo, keno, slot machines or poker tournaments.

Backup withholding is also 24%. It applies when the winner does not give a correct taxpayer identification number, no regular withholding was taken and the winnings meet the reporting level. Non-cash prizes are valued at fair market value, and if the payer pays the withholding tax itself the rate on the prize value is 31.58%. A winner must show two forms of identification, one with a photo, for several of these payouts; a completed Form W-9 can serve as the non-photo ID. Payments to nonresident aliens and foreign entities are not reported on a W-2G.

Winnings are income either way

Pub. 17 and Pub. 529 say you must report the full amount of gambling winnings, on Schedule 1, and that winnings from fantasy sports leagues are gambling winnings. Gambling losses go on Schedule A and are claimed only if you itemize. You cannot net losses against winnings and report the difference, so keep a diary showing the date and type of wager, where it happened and the amounts won and lost.

The 90 percent loss rule

Public Law 119-21 section 70114 rewrote section 165(d) for tax years beginning after December 31, 2025. The amount allowed as a deduction for losses from wagering transactions is now equal to 90% of the losses, and is allowed only to the extent of gains from those transactions. So if you win $10,000 and lose $10,000, you now include $10,000 and deduct only $9,000, leaving $1,000 of taxable income. The definition of losses includes deductions incurred in carrying on a wagering transaction. The second tool above applies it.

Worked example

A $1,200 slot machine jackpot in 2026 is below the $2,000 level in the 2026 instructions, so no W-2G should be due, but the $1,200 is still income. A $2,400 keno win on a $4 ticket is $2,396 after the wager, above $2,000, so a W-2G is due; there is no regular withholding on keno, but backup withholding of 24% applies if no taxpayer ID is given. A $2,500,000 lottery win on a $2 ticket has proceeds above $5,000 and well over 300 times the wager, so 24% of $2,499,998, or $599,999.52, is withheld.

Sources

• Instructions for Forms W-2G and 5754 (01/2026) — game types, 300x test, 24% withholding, identification
• Publication 1099 (2026) — W-2G level and due dates; 2025 edition shows earlier levels
• Public Law 119-21, section 70114 — 90% wagering loss limit for tax years after 2025
• Publication 529 — reporting winnings and itemizing losses; keep a diary

Figures and rules above were retrieved November 2026 from the IRS pages listed. The 2026 W-2G instructions were last revised January 2026; confirm per-game levels with the payer.

Frequently asked questions

What is the W-2G threshold in 2026?

The W-2G instructions say the minimum threshold for payments made in calendar year 2026 is $2,000, and Pub. 1099 (2026) lists $2,000 or more as the general level. For many wagers the winnings must also be at least 300 times the wager.

When is 24% withheld from gambling winnings?

Regular withholding of 24% applies when winnings minus the wager are more than $5,000 from a lottery, sweepstakes or wagering pool, or from pari-mutuel or sports wagering where winnings are at least 300 times the wager. It applies to the whole proceeds.

Do I owe tax on winnings if I do not get a W-2G?

Yes. Gambling winnings are income whether or not a W-2G is issued. A payer not filing a form means only that reporting or withholding levels were not met.

Can I deduct gambling losses?

Only if you itemize, on Schedule A, and only up to your winnings. For tax years beginning after 2025, Public Law 119-21 limits the deduction to 90% of your losses.

What is backup withholding on gambling?

A 24% withholding on reportable winnings when the winner does not give a taxpayer identification number and no regular withholding was taken.