IRS considers that as income. Income is payment for hours worked, for child support, for disability, for any money you receive... You win at the slots, you pay taxes. You panhandle, you pay taxes (although I wonder about that, how can the IRS run down all those folks who panhandle?). Your long lost relative who died in Nigeria and left a bundle for you to collect via a Nigerian general/surgeon is taxable. You tip your server, your server declares the tip (or so the IRS hopes).
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