So sorry, (please don't shoot the messenger here) but yes ... ALL gambling winnings are SUPPOSED to be reported.IRS
taxes ALL (what they call) net increases in wealth; gambling winnings, sweepstakes winnings, bartering gains (trading a 1000 motorcycle for a 5000 car, etc., etc)
You might remember the news piece about the winners of Oprah's give-aways (sometimes cars) being taxed on those prizes as income
Now, is there any way to track this? ... and could the numbers be so small that IRS will not pursue it (they call this Di Minimis amounts - more costly to pursue than the tax revenue it generates).
No, no way to track, and sometimes not worth it to them anyway.
But yes, technically, the tax law
calls this a taxable net increase in wealth.
By the way, you can ALSO deduct your losses UP TO the winning amount (wiping out the winnings if you had enough losses IF you itemize and file a Schedule A
You're supposed to report gambling winnings on line 21 of your tax return
Here's the IRS guidance on this:
Let me know if you have questions...
I hope you'll rate
me (that's the only way we get credit
for the work here) based on thoroughness and accuracy, rather than any good news/bad news content ... Hopefully, having all the facts will help you "see around some corners."