What is a W-2G form used for?

The W-2G form is specifically utilized for reporting gambling winnings to the IRS. This includes both the amounts won and any associated federal tax withholding. The purpose of this form is to ensure transparency and compliance with tax laws regarding the income individuals may earn from gambling activities, such as lotteries, raffles, and casino games. When a player wins a substantial sum that meets or exceeds established thresholds, the gaming entity is required to issue this form to both the winner and the IRS, ensuring that the income is properly reported.

In contrast, the other forms mentioned in the choices serve different purposes. For instance, the reporting of employee wages is conducted with the W-2 form, while employee withholding information is conveyed through forms like the W-4. Lastly, verifying employee withholding allowances involves collaboration between employees and employers, typically managed through internal payroll systems rather than a tax reporting form like the W-2G.