Technically you are required to report every CENT of income from ANY source. If you stop and give a hitchhiker a ride and he gives you $5 as a thank you that is income and you have to report it.
Now realistically the IRS isn't going to care about the recreational gambler who wins $500 one year and loses $300 the next. I believe that any deposit of over $5,000 dollars at a bank is reported to the IRS, (someone else may have the exact numbers)
Keep your checks from the book small so there is not much suspicion or even better keep it in case in some way.
Or if you really want to, list it as a hobby that earns income and claim every cent. Unfortunately losing money in a hobby is not a deduction.
so is there a certain amount i have to make in a year to pay taxes??? do they do it by the year?