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Enter a payout and wager to see whether the two IRS tests that trigger a Form W-2G and federal withholding on sports wagering winnings are met. Winnings are taxable either way.
Last verified: . Education only, not betting, legal or tax advice.
How it works
The IRS instructions for Form W-2G say that for sports wagering, a payer files Form W-2G for winnings that meet or exceed the applicable reporting threshold if the winnings are at least 300 times the wager. Federal income tax (24%) must be withheld if the winnings minus the wager exceed $5,000 and the winnings are at least 300 times the wager. If you do not give a taxpayer identification number, backup withholding can apply. Most sports bets never meet the 300x test, which is why many winners never receive a W-2G, but all gambling winnings are still taxable income that you must report. See the taxes guide. This tool is informational, not tax advice.
The math
Reportable test: payout >= threshold and payout >= 300 x wager.
Withholding test: (payout - wager) > $5,000 and payout >= 300 x wager; withholding = 24% x (payout - wager).
Worked examples
$6,000 payout on a $10 wager: 600x the wager, net $5,990, so both tests are met and 24% of $5,990 = $1,437.60 would be withheld.
$10,000 payout on a $100 wager: 100x, so the 300x test is not met and neither W-2G test applies, but the winnings are still taxable.
What this calculator does not do: it does not tell you what to bet, whether a bet is good value, or how likely any real game outcome is. It only does arithmetic on the numbers you enter, in your browser; nothing you type is sent or saved.
