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Alternatively, you can ask the IRS to send you a copy. The gambling establishment sent a copy of the W-2G to the IRS to report the money it withheld from your winnings. You use Form W-2G to report certain gambling winnings. When you gamble and win more than a threshold amount — which varies according to the specific gambling activity — the casino or another gambling establishment deducts from your winnings an IRS-prescribed withholding amount.
Remember that the IRS has almost certainly received a copy of your W-2G from the gambling establishment. That being so, the first thing to do when you've lost your copy of the W-2G is to get in touch with the establishment that first gave it to you and ask for another one.
If that doesn't work, you can also contact the IRS and ask for a copy. If it's tax time and the filing date is fast approaching, you can always file without the form, being sure, of course, to accurately report your winnings. Sometimes, you'll get a letter from the IRS asking you to report the amount.
When this happens, it's not a problem. Simply write back and explain that although you've lost the form, you did correctly report the winnings on your return. Usually a gambling establishment withholds 25 percent of what you've won. If you don't have a Social Security number or you fail to provide the establishment with one, it will withhold 28 percent instead. This may or may not be what you actually owe. High-earners may owe more because of their tax bracket; gambling winnings are simply another component of taxable income.
If, for example, your other income already puts you in the highest tax bracket, the gambling winnings add to that and become subject to the highest percentage rate. Sometimes you may owe less than the 25 percent amount withheld. One important thing to keep in mind is that gambling winnings are always net of costs. I am a retired Registered Investment Advisor with 12 years experience as head of an investment management firm.