The W-2G says 2022, not 2021? Did you win it from a tax-exempt organization? If so, they would collect the tax and remit the withholding and then report it to you on a W2-G. Then you get credit for the withholding when you file your tax return.
If you won the raffle conducted by organizations exempt under section 501 of the Internal Revenue Code. A tax-exempt organization that sponsors raffles may be required to secure information about the winner(s) and file reports on the prizes with the Internal Revenue Service. The organization may also be required to withhold and remit federal income taxes on prizes.
For noncash prizes, the winner must pay the organization 25% of the fair market value of the prize minus the amount of the wager.
Example 3: Jason purchased a $1 ticket for a raffle conducted by X, an exempt organization. On October 31, 2004, the drawing was held and Jason won a car worth $10,000 (fair market value). Because the prize exceeds $5,000 and the fair market value of the car is $10,000, the tax on the fair market value of the prize is $2,499.75 [($10,000 minus $1 ticket cost) x 25%)]. Jason must pay $2,499.75 to X to remit to the IRS on his (Jason’s) behalf. X would indicate the fair market value of the prize ($10,000) in box 1 and the amount of the withholding tax paid ($2,499.75) in box 2 on Form W-2G.
From: Tax-Exempt Organizations and Raffle Prizes - Reporting Requirements and Federal Income Tax Withholdi...
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