International (non-U.S.) winners of gambling prizes should only receive Form 1042-S, which is specifically designed for reporting U.S.-sourced income paid to non-U.S. persons and the associated withholding tax.
Form 1042-S for International Winners:
- Form 1042-S is used to report U.S. source income that is subject to withholding for non-U.S. persons (foreign nationals). This form is specifically for reporting gambling winnings paid to international winners (non-U.S. residents) and is used to report any withholding tax on those winnings.
- The gambling organization or casino will issue Form 1042-S to international winners if they are subject to U.S. tax withholding, and this form will reflect both the income and the amount of tax withheld.
Form W-2G and U.S. Persons:
- Form W-2G is used for U.S. citizens and residents who win gambling prizes that meet IRS reporting thresholds. This is the form used for U.S. tax reporting, including winnings from slots, lotteries, poker tournaments, etc.
