Instructions for Forms W-2G and 5754 - Rev. January 2026

Sep 19, 2026

Instructions for filing and completing IRS Forms W-2G and 5754, covering changes and key reporting rules. Updates address higher thresholds for certain information returns and backup withholding, plus added guidance for sports wagering winnings. Reminders include using Pub. 1099 and explain continuous-use conversion, withholding rates under Sections 3402(q) and 3406, payee identification requirements, rules for aggregating and treating wagers, and optional reporting methods for bingo, keno, and slot machine winnings.

LanguageEnglish

CategoryForms

FormatPDF

Pages8

Reading Time3 min

AccessFree to download

What’s New

Increase in threshold and inflation adjustment

Sports wagering reporting

Future Developments

Reminders

Continuous-use form and instructions

Regular withholding rate and backup withholding rate

Payee identification rules

Rules for determining wager amount

Optional reporting method for certain winnings

Instructions for Forms W-2G and 5754 (Rev. January 2026) Section references are to the Internal Revenue Code unless otherwise noted. What’s New Increase in threshold for requiring filing of certain information returns and backup withholding. For calendar years after 2025, the minimum threshold amount for reporting certain payments and backup withholding on certain information returns, including the Form W-2G, will be adjusted yearly for inflation. The minimum threshold amount for payments made in calendar year 2026 is $2,000 . See Pub. 1099 and [IRS.gov.InflationAdjustment](IRS.gov.InflationAdjustment) for future years threshold amounts. Sports wagering. A section has been added with information on reporting gambling winnings earned from wagering on sports. See 5. Sports Wagering for more information. Future Developments Information about any future developments affecting Form W-2Gor Form 5754 (such as legislation enacted after they were published) will be posted at [IRS.gov/FormW2G](IRS.gov/FormW2G and IRS.gov/)[ and](IRS.gov/FormW2G and IRS.gov/)[ ](IRS.gov/FormW2G and IRS.gov/)[IRS.gov/](IRS.gov/FormW2G and IRS.gov/)[ ](IRS.gov/FormW2G and IRS.gov/)[Form5754](Form5754) , respectively. Information about developments affecting these instructions will be posted on both pages. Reminders In addition to these specific instructions, you should also use Pub. 1099, General Instructions for Certain Information Returns, which includes information about the following topics. • Backup withholding. • Electronic reporting requirements. • Penalties. • When and where to file. • Taxpayer identification numbers. • Statements to recipients. • Corrected and void returns. • Other general topics. Pub. 1099 is available at [IRS.gov/1099GeneralInstructions](IRS.gov/1099GeneralInstructions). Continuous-use form and instructions. Form W-2G and its instructions have been converted from an annual revision to continuous use. Both the form and instructions will be updated as needed. For the most recent version, [go to](go to IRS.gov/)[ ](go to IRS.gov/)[IRS.gov/](go to IRS.gov/)[ ](go to IRS.gov/)[FormW2G](FormW2G.)[.](FormW2G.) Regular withholding rate. The withholding rate under Section 3402(q) applicable to winnings of $5,000 or more from sweepstakes, wagering pools, certain parimutuel pools, jai alai, lotteries, and sports wagering is 24% . This rate appears in the Withholding, Regular Gambling Withholding for Certain Games, Noncash payments, and Backup Withholding sections under Specific Instructions for Form W-2G; the Withholding section under 1. Horse Racing, Dog Racing, JaiAlai, and Other Wagering Transactions Not Discussed Later; the Withholding section under 2. Sweepstakes, Wagering Pools, and Lotteries; and the Withholding and Forms W-2G for Multiple Winners section under Specific Instructions for Form 5754. Backup withholding rate. The backup withholding rate under Section 3406 applicable to certain winnings where the winner doesn’t furnish a correct taxpayer identification number (TIN) is 24% . This rate appears in the Withholding, Regular Gambling Withholding for Certain Games, and Backup Withholding sections under Specific Instructions for Form W-2G; the Withholding section under 1. Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed Later; and the Withholding section under 2. Sweepstakes, Wagering Pools, and Lotteries. Payee identification rules. 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, sports wagering, 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. A completed and signed Form W-9 is acceptable as the nonphoto form of identification. G

FAQs

What update affects the threshold for filing certain information returns related to Form W-2G?

For calendar years after 2025, the minimum threshold amount for reporting certain payments and backup withholding on certain information returns (including Form W-2G) will be adjusted yearly for inflation, with the 2026 minimum threshold stated as $2,000.

How does the document address sports wagering for Form W-2G?

A new section was added with guidance for reporting gambling winnings earned from wagering on sports, referenced under the sports wagering section.

What identification is required from a payee for certain gambling winnings reporting and withholding?

A payee meeting applicable reporting and withholding thresholds must present two forms of identification, including one with a photo; a completed and signed Form W-9 is acceptable as the non-photo form of identification, with certain tribal-government-owned or licensed gaming establishments able to waive the photo requirement for eligible members.

Sep 19, 2026

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