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File Form W-2G, Certain Gambling Winnings, 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.
How winnings are reported to the IRS: Form W-2G. The payer must provide you with a Form W-2G if you win: $600 or more if the amount is at least 300 times the wager (the payer has the option to reduce the winnings by the wager) $1,200 or more (not reduced by wager) in winnings from bingo or slot machines.
When the individual files personal income taxes, the prize money will show up on a 1099-Misc if over $600.00, and will be filed with the return. Prize money of $50.00 or more is self-reported on 1040 line 21. A W-9 form must be filled out by the winner and on file with the company awarding the prize.
You must report all gambling winnings on Form 1040 or Form 1040-SR (use Schedule 1 (Form 1040)PDF), including winnings that arent reported on a Form W-2GPDF. When you have gambling winnings, you may be required to pay an estimated tax on that additional income.
Typically, tax on winnings, like sweepstakes or prize money, should be reported to you in Box 3 (other income) of IRS Form 1099-MISC. This includes winnings from sweepstakes when you did not make an effort to enter and also applies to merchandise won from a game show.
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As a non-profit organization, you are responsible for reporting any winnings over $600 from a raffle to the IRS and issuing the appropriate tax form to the winner. In this case, if you issued a 1099-MISC form to the raffle winners, it may not be the correct form, and you may need to issue a W2G form instead.
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.

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