Updated October 19, 2026. Quick answer: Box 4 of Form W-2G shows any federal income tax withheld on the winnings, either regular gambling withholding or backup withholding. The winner copy says to include the box 4 amount on Form 1040 as federal income tax withheld. Boxes 13 to 18 are the state and local entries, which the instructions say are provided for the payer’s convenience and need not be completed for the IRS.
What box 4 reports
The winner copy describes the box directly: “Any federal income tax withheld on these winnings is shown in this box.” It adds the general rule: “Federal income tax must be withheld on certain winnings less the wager.” For the full set of boxes see the Form W-2G boxes guide, and for the reportable amount in box 1 see Form W-2G box 1 and box 7.
Two kinds of withholding
The filer instructions separate the two kinds: “There are two types of withholding on gambling winnings: (a) regular gambling withholding at 24% (31.58% for certain noncash payments), and (b) backup withholding that is also at 24%.” They also say the two do not stack: “If a payment is already subject to regular gambling withholding, it isn’t subject to backup withholding.”
Regular gambling withholding is the one tied to the size of the prize. The instructions say the tax is figured on the whole payout after the wager, not just a slice: “Regular gambling withholding is figured on the total amount of gross proceeds (the amount of winnings minus the amount wagered), not merely on the amount in excess of $5,000.” The instructions list the wager types that can be subject to it, including sweepstakes, wagering pools and lotteries, and then say “Regular gambling withholding doesn’t apply to winnings from bingo, keno, or slot machines”.
Backup withholding is tied to the information you gave the payer. The winner copy puts it this way: “Certain winnings that are not subject to regular gambling withholding may be subject to backup withholding if you did not provide your taxpayer identification number (TIN) to the payer.” The instructions list the conditions: “The winner doesn’t furnish a correct taxpayer identification number (TIN),” “Regular gambling withholding hasn’t been withheld, and” the winnings meet the reporting threshold and, where it applies, the 300 times condition. They add: “The total amount, not just the payments in excess of the applicable reporting threshold, is subject to backup withholding.”
For the form that supplies the number, see Form W-9. The same backup withholding idea appears on Form 1099-DIV box 4 and Form 1099-K box 4.
What the payer enters in box 4 by game type
The instructions give a separate box 4 entry for each type of gambling.
| Type of gambling | What the payer’s instructions say to enter in box 4 |
|---|---|
| Horse racing, dog racing, jai alai and other wagering (section 1) | “Enter any federal income tax withheld, whether regular gambling withholding or backup withholding.” |
| Sweepstakes, wagering pools and lotteries (section 2) | “Enter any federal income tax withheld, whether regular gambling withholding or backup withholding.” |
| Bingo, keno and slot machines (section 3) | “Enter any backup withholding.” |
| Poker tournaments (section 4) | “Enter zero as the amount, unless the winning person hasn’t provided a TIN. If the winning person hasn’t provided a TIN, enter the backup withholding amount.” |
| Sports wagering (section 5) | “Enter any federal income tax withheld, whether regular gambling withholding or backup withholding.” |
For the poker tournament row, a zero in box 4 is therefore the expected entry when a tax identification number was provided. The same instructions say that for poker tournaments “regular gambling withholding doesn’t apply to the winnings.”
Noncash prizes
When the prize is not cash, the instructions explain how the payer figures the tax: “If the FMV exceeds $5,000, after deducting the price of the wager, the winnings are subject to 24% regular gambling withholding.” The tax is paid in one of two ways. “The winner pays the withholding tax to the payer. In this case, the withholding is 24% of the FMV of the noncash payment minus the amount of the wager.” “The payer pays the withholding tax. In this case, the withholding is 31.58% of the FMV of the noncash payment minus the amount of the wager.”
Where the payer pays the tax, the instructions say what the form shows: “If you use method 2, enter the sum of the noncash payment and the withholding tax in box 1 of Form W-2G and the withholding tax paid by the payer in box 4.” So a box 1 figure larger than the prize value can be explained by this method.
Where box 4 goes on the return
The winner copy gives the direction: “Include the amount shown in box 4 on your Form 1040 or 1040-SR as federal income tax withheld.” It adds “See Pub. 505 for additional information.” That line is explained on Form 1040 line 25, and the estimated payments reported next to it are on Form 1040 line 26. If you make estimated payments during a year with large winnings, see Form 1040-ES.
Copy B is the one to attach: “If this form shows federal income tax withheld in box 4, attach this copy to your return.” On the payer’s side, a withholding is accompanied by a form to you: “If you backup withhold on a payment, you must file the appropriate Form 1099 or Form W-2G with the IRS and furnish a statement to the recipient to report the amount of the payment and the amount withheld.”
Boxes 13 to 18: state and local entries
The instructions give boxes 13 to 18 a different status from the rest of the form: “These boxes are provided for your convenience only and need not be completed for the IRS.” The same status applies to the copies: “Boxes 13, 14, and 15 and Copies 1 and 2 are provided for your convenience only and don’t have to be completed for the IRS.”
| Box | What the payer’s instructions say |
|---|---|
| Box 13 | “Enter the abbreviated name of the state and your state identification number.” |
| Box 14 | “Enter the amount of state winnings.” |
| Box 15 | “Enter the amount of state income tax withheld.” |
| Box 16 | “Enter the amount of local winnings.” |
| Box 17 | “Enter the amount of local income tax withheld.” |
| Box 18 | “Enter the name of your locality.” |
A payer who withheld state tax is told “If you withheld state income tax on a payment of gambling winnings, you may enter it in box 15 of Form W-2G. If you do, also complete boxes 13 and 14.” The local version reads “If you withheld local income tax on a payment of gambling winnings, you may enter it in box 17 of Form W-2G. If you do, also complete boxes 16 and 18.”
Copy 1 and Copy 2
The two state copies have different jobs. The instructions say “If a state tax department requires you to send it a paper copy of Form W-2G, use Copy 1 for that purpose. Give Copy 2 to the winner for use in filing a state income tax return.” The wording printed on Copy 2 itself is “Attach this copy to your state, city, or local income tax return, if required.” Because boxes 13 to 18 are optional for the payer, a blank state box does not tell you whether your state requires you to report the winnings. Your state’s own instructions decide that.
Edition and box numbers
This page reads Form W-2G (Rev. January 2026) and the Instructions for Forms W-2G and 5754 (Rev. January 2026), the current files irs.gov served on 2026-10-19. The instructions state: “Form W-2G and its instructions have been converted from an annual revision to continuous use.” They add: “Both the form and instructions will be updated as needed.” No earlier edition is compared on this page. Check the version printed on the form you received, because box numbers and wording can change when a form is updated.
Common mistakes
- Leaving box 4 off the return. The winner copy says “Include the amount shown in box 4 on your Form 1040 or 1040-SR as federal income tax withheld.”
- Assuming a zero in box 4 on a poker tournament form is a mistake. The instructions say “Enter zero as the amount, unless the winning person hasn’t provided a TIN.”
- Expecting boxes 13 to 18 to be complete. The instructions say they “need not be completed for the IRS”.
Related: Form 1040 line 25, Form 1040 line 26, Form 1040-ES, Form W-9, and Form 1099-DIV box 4.
Sources
- Form W-2G, Certain Gambling Winnings (Rev. January 2026), with Instructions to Winner: https://www.irs.gov/pub/irs-pdf/fw2g.pdf
- Instructions for Forms W-2G and 5754 (Rev. January 2026): https://www.irs.gov/pub/irs-pdf/iw2g.pdf
- Publication 1099, General Instructions for Certain Information Returns (2026): https://www.irs.gov/pub/irs-pdf/p1099.pdf
- IRS: About Form W-2G: https://www.irs.gov/forms-pubs/about-form-w-2g
Read from the IRS documents linked above on October 19, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.