Illinois Form IL-5754, officially called the Statement by Person Receiving Gambling Winnings, is a tax document used to identify the individuals who receive gambling winnings and the people to whom those winnings are taxable. The form is issued by the Illinois Department of Revenue and is generally required when certain gambling or lottery winnings meet specified reporting thresholds. It applies to Illinois lottery winnings of $1,000 or more, bingo, keno, and slot machine winnings of $2,000 or more when subject to federal withholding requirements, and gambling, pari-mutuel wagering, and sports wagering winnings subject to federal withholding when the winnings exceed $5,000. The form is particularly important when one person receives a payment on behalf of multiple individuals or when the person collecting the winnings is not the only individual entitled to the money. It collects information about the payment, the person to whom the winnings are made payable, and each individual who is entitled to a taxable portion of the winnings. This includes taxpayer identification numbers, names, residential addresses, payment amounts, and Illinois income tax withheld. The information allows the payer to identify the appropriate recipients and prepare Form W-2G, Certain Gambling Winnings, with the correct taxpayer information. Form IL-5754 contains three main steps covering winnings information, recipient details, and the recipient’s signed declaration. Completing the form accurately is important because incorrect names, taxpayer identification numbers, addresses, or payment allocations may affect tax reporting and the preparation of Form W-2G. The form also contains a declaration under penalties of perjury, meaning the person signing it confirms that the information provided is accurate to the best of their knowledge and belief.
Who Must Complete Form IL-5754?
You must complete Form IL-5754 when you receive qualifying Illinois gambling or lottery winnings that meet the reporting conditions specified by the Illinois Department of Revenue.
The form identifies three main categories of winnings.
Illinois Lottery Winnings
Form IL-5754 is required when you receive payment of Illinois lottery winnings of $1,000 or more.
Bingo, Keno, And Slot Machine Winnings
The form applies to bingo, keno, and slot machine winnings of $2,000 or more when those winnings are subject to federal withholding requirements.
Gambling, Pari-Mutuel Wagering, And Sports Wagering
The form also applies to gambling, pari-mutuel wagering, and sports wagering winnings that are subject to federal withholding when the winnings exceed $5,000.
The form helps establish who actually received the payment and which individuals are taxable on the winnings.
How To File Form IL-5754
Form IL-5754 is used to provide the payer with the information needed to identify the person receiving the winnings and the individuals to whom the winnings are taxable.
The payer uses the information supplied on this form to prepare Form W-2G.
Where To Submit Form IL-5754
Provide the completed form to the payer responsible for issuing the gambling or lottery winnings.
The form itself does not provide a mailing address for submitting IL-5754 directly to the Illinois Department of Revenue. Its stated purpose is to provide the payer with the recipient information needed for Form W-2G.
Confirm the preferred submission method with the gambling establishment, lottery agency, or other payer issuing the payment.
Information To Prepare Before Completing The Form
Gather the following information before starting:
- Date the winnings were paid.
- Type of gambling or lottery winnings.
- Total amount won.
- Total Illinois income tax withheld.
- Social Security number (SSN) or federal employer identification number (FEIN) of the person receiving the payment.
- Full name and address of the person receiving the payment.
- SSN or FEIN of each person to whom the winnings are taxable.
- Full name and address of each taxable recipient.
- Amount of winnings attributable to each recipient.
Make sure that the taxpayer identification numbers and recipient information are accurate before entering them on the form.
How To Complete Form IL-5754
Form IL-5754 contains three main steps. Each step collects a different type of information needed to identify the payment and its taxable recipients.
Complete all applicable fields and review the information before signing.
Step 1: Winnings Information
Step 1 collects information about the gambling or lottery payment and identifies the person to whom the winnings were made payable.
The instructions for this section specify that the information must be completed for the person to whom the winnings are paid.
Date Of Payment
Enter the date on which the gambling or lottery winnings were paid.
Use the date the payment was actually made rather than the date the winning ticket was purchased or the wager was placed.
Type Of Winnings
Describe the type of gambling or lottery winnings received.
Identify the applicable category, such as:
- Illinois lottery winnings.
- Bingo winnings.
- Keno winnings.
- Slot machine winnings.
- Gambling winnings.
- Pari-mutuel wagering winnings.
- Sports wagering winnings.
The description should clearly identify the source or type of payment.
Total Amount Won
Enter the full amount of winnings associated with the payment.
This field refers to the total winnings before allocating the amounts among the individual recipients listed in Step 2.
Enter the amount accurately using the payer’s payment information.
Total Illinois Income Tax Withheld
Enter the total amount of Illinois income tax withheld from the winnings.
Use the withholding information provided by the payer.
Do not enter the federal income tax withholding amount in this field. The form specifically requests Illinois income tax withheld.
Person To Whom Winnings Were Made Payable
The next section of Step 1 identifies the individual or entity to whom the winnings were officially paid.
Complete the following fields using the information of the person receiving the payment.
Taxpayer Identification Number (SSN Or FEIN)
Enter the taxpayer identification number of the person to whom the winnings were made payable.
Use the appropriate identification number:
- Social Security number (SSN) for an individual.
- Federal employer identification number (FEIN) for an eligible business or entity.
Enter the complete identification number in the spaces provided.
Name
Enter the full legal name of the individual or entity receiving the gambling or lottery payment.
The name should correspond to the SSN or FEIN entered above.
Street Address
Enter the complete street address of the person or entity receiving the winnings.
Include the street number and street name.
City
Enter the city where the recipient’s address is located.
State
Provide the state abbreviation associated with the recipient’s address.
ZIP Code
Enter the ZIP code corresponding to the recipient’s mailing address.
Review the complete address to ensure that it is accurate and consistent with the recipient’s identification information.
Step 2: Who Will Receive Winnings?
Step 2 identifies the individuals who are entitled to receive a portion of the gambling or lottery winnings.
This section is especially important when the person receiving the payment is collecting winnings on behalf of other individuals.
The form provides space for three separate recipients.
For each person, you must provide their taxpayer identification number, amount won, name, street address, city, state, and ZIP code.
Recipient 1
Recipient 1: Taxpayer Identification Number (SSN Or FEIN)
Enter the Social Security number or federal employer identification number of the first person who is taxable on a portion of the winnings.
Use the identification number belonging to the individual or entity receiving the allocated winnings.
Recipient 1: Amount Won
Enter the amount of winnings attributable to the first recipient.
This should represent the portion of the total winnings that belongs to this person.
Recipient 1: Name
Enter the full legal name of the first person entitled to receive the winnings.
Make sure the name matches the taxpayer identification number provided.
Recipient 1: Street Address
Enter the first recipient’s complete street address.
Recipient 1: City
Enter the city where the first recipient resides.
Recipient 1: State
Provide the state abbreviation for the first recipient’s address.
Recipient 1: ZIP Code
Enter the ZIP code associated with the first recipient’s address.
Recipient 2
Recipient 2: Taxpayer Identification Number (SSN Or FEIN)
Enter the SSN or FEIN of the second person who is entitled to a taxable portion of the winnings.
Make sure the identification number belongs to the correct recipient.
Recipient 2: Amount Won
Enter the amount of winnings allocated to the second recipient.
The amount should reflect that person’s share of the total winnings.
Recipient 2: Name
Enter the second recipient’s full legal name.
Recipient 2: Street Address
Provide the complete street address of the second recipient.
Recipient 2: City
Enter the city where the second recipient resides.
Recipient 2: State
Provide the state abbreviation associated with the second recipient’s address.
Recipient 2: ZIP Code
Enter the second recipient’s ZIP code.
Recipient 3
Recipient 3: Taxpayer Identification Number (SSN Or FEIN)
Enter the SSN or FEIN of the third individual or entity entitled to a portion of the winnings.
Recipient 3: Amount Won
Enter the amount of winnings allocated to the third recipient.
This should represent the third person’s share of the payment.
Recipient 3: Name
Enter the full legal name of the third recipient.
Recipient 3: Street Address
Enter the complete street address of the third recipient.
Recipient 3: City
Provide the city where the third recipient resides.
Recipient 3: State
Enter the state abbreviation for the third recipient’s address.
Recipient 3: ZIP Code
Enter the ZIP code corresponding to the third recipient’s address.
Important Information About Step 2
The form provides three recipient sections.
Each section must identify a person who is entitled to a portion of the winnings.
Before proceeding to Step 3, review the amounts allocated to the recipients and check that the information accurately reflects who is entitled to the payment.
The form does not provide a specific procedure for listing more than three recipients. If additional recipients are involved, contact the payer for instructions before submitting the statement.
Step 3: Signature And Declaration
Step 3 is the final section of Form IL-5754.
The person completing the form must sign and date it after reviewing the information entered in Steps 1 and 2.
Declaration Under Penalties Of Perjury
The declaration states that, to the best of the signer’s knowledge and belief, the names, addresses, and taxpayer identification numbers provided correctly identify the person receiving the payment and every person entitled to a portion of the winnings.
By signing, you confirm that:
- The person receiving the payment has been correctly identified.
- The names of the individuals entitled to the winnings are accurate.
- The addresses provided are correct.
- The taxpayer identification numbers belong to the corresponding recipients.
- The information accurately identifies everyone entitled to any portion of the payment.
This is a formal declaration made under penalties of perjury.
Review the entire form before signing to ensure that all information is correct.
Signature
Sign your full name in the designated signature field.
The signature must belong to the person making the declaration and completing the statement.
Date
Enter the date on which you sign Form IL-5754.
Make sure the date is accurate and corresponds to the actual signing date.
Additional Information And Assistance
The bottom section of Form IL-5754 contains important administrative information.
Authorization Under The Illinois Income Tax Act
The form states that it is authorized under the Illinois Income Tax Act.
It also explains that disclosure of the requested information is required.
Failure To Provide Information
The department warns that failure to provide the requested information may result in the form not being processed and may also result in a penalty.
This makes it important to complete the identification, payment, and recipient information accurately.
Where To Get Help With Form IL-5754
If you need assistance completing the form, the Illinois Department of Revenue provides the following contact options:
- Website: tax.illinois.gov
- Telephone: 800-732-8866
- Alternative Telephone: 217-782-3336
- TTY: 800-544-5304
These contact options can be used to request assistance with Illinois tax-related questions.
Understanding The Difference Between Form IL-5754 And Form W-2G
Form IL-5754 and Form W-2G serve different purposes in gambling winnings reporting.
Form IL-5754
This form collects information about the person receiving the payment and the individuals to whom the winnings are taxable.
It identifies the recipients, their taxpayer identification numbers, addresses, and allocated winnings.
Form W-2G
Form W-2G is the federal reporting document used by the payer to report certain gambling winnings and applicable withholding information.
The payer uses the information provided on IL-5754 to prepare Form W-2G.
Therefore, IL-5754 is an information-gathering statement, while W-2G is the resulting gambling winnings reporting document prepared by the payer.
Common Mistakes To Avoid When Completing Form IL-5754
Even though IL-5754 is a relatively short form, mistakes can affect the accuracy of gambling winnings reporting.
Pay attention to the following issues:
- Incorrect Payment Date: Enter the actual date the winnings were paid.
- Unclear Winnings Description: Identify the type of lottery or gambling winnings accurately.
- Incorrect Total Amount: Report the full amount won rather than an individual recipient’s allocated share.
- Incorrect Illinois Withholding: Enter Illinois income tax withheld, not federal withholding.
- Mismatched Identification Numbers: Ensure each SSN or FEIN corresponds to the correct name.
- Incomplete Recipient Information: Provide all requested identification and address details for each listed recipient.
- Incorrect Allocation: Enter the amount of winnings belonging to each individual.
- Missing Signature: The person completing the statement must sign it.
- Missing Date: Enter the date of signature.
- Incomplete Declaration Review: Read the perjury declaration before signing.
Final Review Before Filing
Before providing Form IL-5754 to the payer, review the following checklist.
Step 1: Winnings Information
- Date of payment is entered.
- Type of winnings is identified.
- Total amount won is provided.
- Total Illinois income tax withheld is entered.
- Recipient’s SSN or FEIN is correct.
- Recipient’s full name is provided.
- Street address is complete.
- City is entered.
- State is provided.
- ZIP code is correct.
Step 2: Taxable Recipients
- First recipient’s SSN or FEIN is entered, if applicable.
- First recipient’s amount won is provided.
- First recipient’s name and address are complete.
- Second recipient’s SSN or FEIN is entered, if applicable.
- Second recipient’s amount won is provided.
- Second recipient’s name and address are complete.
- Third recipient’s SSN or FEIN is entered, if applicable.
- Third recipient’s amount won is provided.
- Third recipient’s name and address are complete.
- All recipient information correctly identifies the individuals entitled to the winnings.
Step 3: Signature And Declaration
- Declaration has been reviewed.
- Signature is provided.
- Date of signature is entered.
- All information is accurate to the best of the signer’s knowledge and belief.
Final Submission Check
- All applicable sections have been completed.
- Names match their respective taxpayer identification numbers.
- Payment amounts and recipient allocations have been reviewed.
- The completed statement is ready to be provided to the payer.
- The payer’s preferred submission method has been confirmed.
Final Reminder: Form IL-5754 helps the payer correctly identify the individuals to whom gambling winnings are taxable and prepare the appropriate Form W-2G. Make sure every recipient is accurately identified, each allocated amount is correct, and the declaration is signed and dated before providing the form to the payer.