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.