The IRS announced a new and regular backup withholding rate for the 2018 Form W-2G. Form W-2G is used to report gambling winnings and any federal income tax withheld on those winnings.
Effective for taxable years beginning after December 31, 2017, the withholding rate applicable to winnings of $5,000 or more from sweepstakes, wagering pools, certain pari-mutuel pools, jai alai, and lotteries has been reduced from 25% to 24%.
Additionally, effective for taxable years beginning after December 31, 2017, the backup withholding rate applicable to certain winnings where the winner doesn’t furnish a correct taxpayer identification number has been reduced from 28% to 24%.
To view the announcement, please click here.