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Retirement tax questions
If you have a W-2G with a withholding amount shown, that means that that amount has been sent to the IRS in your name. The IRS gets a copy of the W2-G and the organization must also furnish a form W3-G to the IRS, which is a summary of all the W-Gs that they have issued throughout the year.
You will enter the W2G as shown. The value of the winnings, in this case a car, will be added to your taxable income, and you will get credit for the withholding. If the withholding was not enough, the extra tax will be subtracted from your refund or added to the tax you owe. If the withholding was more than your tax, the extra will be added back to your refund.
‎January 31, 2022
8:58 PM