It depends. If you know that you put money into your gambling account and withdrew the same amount without doing any gambling, then none of it is taxable. You would simply keep your documentation with your return and do not report it as income.
If you did any gambling then you have income and the gambling expense, if any, would be allowed only if you itemize deductions. If you do not have enough to itemize deductions then all gambling winnings are taxable.
The law is not intended to track personal transactions such as sharing the cost of a car ride or meal, birthday or holiday gifts, or paying a family member or another for a household bill.
It will be very important to keep a list of payments received to document proof of non-income payments. The IRS requires reporting for anyone who receives payments that exceed $600 for 2023.
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