What type of winnings does Form W-2G report?

Form W-2G specifically reports certain gambling winnings, which include amounts won from various types of gambling activities such as lotteries, poker tournaments, and other gambling games. This form is used to document winnings that exceed a specific threshold set by the IRS, and it also includes details regarding federal income tax withheld on those winnings.

This differentiation is important because not all cash prizes or income types are reported on this form; for example, income from employment or gifts and donations are reported differently. Understanding the specific context of Form W-2G helps clarify why it is focused solely on certain gambling winnings rather than all income types or other prizes.