Figure backup withholding on the amount of the winnings reduced, at the option of the payer, by the amount wagered. That is, backup withholding of 24% applies if the winnings are at least $600 but not more than $5,000 and are at least 300 times the wager. If the winner of reportable gambling winnings doesn't provide a TIN, you must backup withhold on any such winnings that aren't subject to regular gambling withholding at the same withholding rate of 24%. Withhold 24% of the proceeds (the winnings minus the wager). You must withhold federal income tax from the winnings if the winnings minus the wager exceed $5,000. These rules affect boxes 1, 4, and 7 under the instructions for Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed Later and for Sweepstakes, Wagering Pools, and Lotteries. Two or more wagers are identical wagers if winning depends on the occurrence (or non-occurrence) of the same event or events the wagers are placed with the same payer and, in the case of horse races, dog races, or jai alai, the wagers are placed in the same parimutuel pool. These rules affect boxes 1 and 4 under the instructions for Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed Later.Īmounts paid with respect to identical wagers are treated as paid with respect to a single wager for purposes of calculating the amount of proceeds from a wager.

Rules for determining the amount of the wager for certain gambling winnings.Īll wagers placed in a single parimutuel pool and represented on a single ticket are aggregated and treated as a single wager for purposes of determining the amount of the wager with respect to winnings from parimutuel betting on horse racing, dog racing, or jai alai. Sweepstakes, Wagering Pools, and Lotteries and 3. Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed Later 2. These rules affect boxes 11 and 12 under the instructions for 1. Gaming establishments owned or licensed by a tribal government of a federally recognized Indian tribe may waive the photo ID requirement for payees who are members of that tribe and present a tribal member identification card issued by the same tribe. A completed and signed Form W-9 is acceptable as the nonphoto form of identification.

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, 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.

Taxes on slot machine winnings