IRS forms · Updated September 2026
IRS Form 5754: How to Split Gambling Winnings
Quick answer: Form 5754 tells the casino or lottery that a prize belongs to more than one person, so each winner gets their own W-2G for their share. The person who collects the money fills it out, everyone listed signs it, and it goes to the payer — not the IRS, before the payout (and no later than December 31 of the year you won).
Why it matters
Without Form 5754, the entire jackpot lands on one person's W-2G. The IRS matches that figure against their tax return, so they owe tax on money they handed to other people — and the transfers can count as taxable gifts on top. Filing the form up front puts each winner's share on their own W-2G and splits the withholding along with it.
Most common uses: office lottery pools, syndicate tickets, split slot jackpots, and shared poker tournament backing deals.
How to fill out Form 5754, step by step
1. Confirm the win is reportable
Form 5754 only matters when the payer must issue a W-2G: $2,000+ on slots or bingo (the 2026 threshold, up from $1,200), $1,500+ on keno, $5,000+ in a poker tournament, or $600+ at odds of 300:1 or better.
2. Collect everyone's details before you cash out
Each winner needs a legal name, current address, and taxpayer identification number (usually an SSN). Missing a TIN can trigger 24% backup withholding on that person's share.
3. Complete Part I
The person who physically receives the money enters their own information here — they are the 'person receiving the winnings' even if their share is small.
4. Complete Part II
List every other winner, the amount won by each, and the federal income tax withheld allocated to each. The amounts across Parts I and II must total the full prize and the full withholding.
5. Everyone signs, then hand it to the payer
All listed winners sign under penalties of perjury. Give the completed form to the casino, racetrack, or lottery office — not to the IRS. The payer files a separate W-2G for each winner.
6. Keep a copy and match it at filing time
Save a copy with your session records. When the W-2Gs arrive in January, confirm your share and withholding match before you file.
Worked example: a $20,000 pool win
Four coworkers split a $20,000 lottery prize evenly. One person collects it, and $4,800 in federal tax is withheld at 24%.
| Winner | Share of prize | Withholding on their W-2G |
|---|---|---|
| Collector (Part I) | $5,000 | $1,200 |
| Winner 2 | $5,000 | $1,200 |
| Winner 3 | $5,000 | $1,200 |
| Winner 4 | $5,000 | $1,200 |
Without Form 5754, the collector's single W-2G would read $20,000 with $4,800 withheld, and the other three would receive nothing on paper.
Keep the records that back it up
The IRS expects contemporaneous records for shared wins: who contributed, how much, and when. Log the win and each share the day it happens.
Use the free gambling ledger template to record shared wins, or track sessions automatically in the tracker.
Common questions
What is IRS Form 5754?
Form 5754, Statement by Person(s) Receiving Gambling Winnings, tells the payer that the person who collected a prize is not the only winner. The payer uses it to issue a separate Form W-2G to each winner for their share instead of putting the full amount on one person's W-2G.
Who has to file Form 5754?
The person who physically receives the winnings completes Form 5754 and gives it to the payer (casino, racetrack or lottery). It is not sent to the IRS by the winners — the payer keeps it on file and uses it to prepare the W-2Gs.
When do you need Form 5754?
Use it whenever a reportable win is shared: a lottery pool at work, a syndicate ticket, a slot jackpot hit on a friend's machine credit, or any prize where the named recipient is not the sole winner. The payer generally must receive it before paying out, and by December 31 of the year of the win at the latest.
What happens if you skip Form 5754?
The full W-2G is issued to the person who collected the money, and the IRS matches that entire amount to their return. They must then report all of it and treat the amounts passed to others as gifts or nominee income, which can create gift-tax reporting and a larger tax bill.
Does Form 5754 change how much tax is withheld?
No. Withholding (24% federal on qualifying wins, plus any state withholding) applies to the total prize at payout. Form 5754 only allocates the winnings and the withholding across the winners so each W-2G shows their share of both.
What information does Form 5754 require?
Part I lists the person receiving the winnings (name, address, taxpayer identification number). Part II lists every other winner with their name, address, TIN, and the amount won plus the withholding allocated to them. Everyone listed must sign under penalties of perjury.
This guide is general information, not tax advice. Confirm your situation with a qualified tax professional, and see the official IRS instructions for Form 5754 before filing.