### Question
Can you define what winnings which are subject to withholding means?


### Answer
**Winnings which are subject to withholding** is defined as the following in *26 U.S.C. § 3402*:

> proceeds from a wager determined in accordance with the following:


#### (A) In general


Except as provided in subparagraphs (B) and (C), proceeds of more than $5,000 from a wagering transaction, if the amount of such proceeds is at least 300 times as large as the amount wagered

#### Citation:
  - *26 U.S.C. § 3402*
  - Heading: **Subtitle C-Employment Taxes > CHAPTER 24-COLLECTION OF INCOME TAX AT SOURCE ON WAGES**

