technically any money you receive can be considered unearned income. And your supposed to report it but most folks don't.
Lets say you bought 20 separate pick 3 tickets and you hit the number straight. Most people would cash them in different places to avoid paying tax. But supposed you were not that bright and walked into lottery headquarters with your 20 tickets. You can bet your bottom dollar you going to pay tax on your winnings. Cause they will add all the tickets together not give you cash and then they'll write a check for you after they take there's off the top. And then they'll send you the forms for the feds.

Agree with four4me. Pac, are you talking about gambling? There is no reason to report $200 because nobody will ever know. Technically, you are supposed to report money you earn mowing lawns too. However, if nobody is ever going to report it to the IRS, why bother (except to be an "upstanding" citizen) However, I am 100% positive that if you earn even 1 week's pay of $500 from someone and quit, and they report it, you will be in deep doo-doo if you don't report it IF YOU ARE CAUGHT. Most of the time the IRS doesn't go after low income and only audits about 2% of filers, but there are flags that pop up. Regarding the $5,000 - yes, in FL the lottery only takes out taxes if you win $5,000 or more. However, they will definitely report anything over $600. It's an IRS rule. Once I earned less than $1,000 from someone and was asked if I would take cash since she didn't want to include it in her employee wages, pay taxes, etc.

http://www.irs.gov/newsroom/article/0,,id=175963,00.html

Read where it says "It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income."

Pac, that link from the IRS should win you that $10 bucks! Buy me a lottery ticket. LOL

All income is taxable. If it is less than $600 for a lottery ticket, you don't have to go to the lottery office and pay tax at that time, etc. However, by law you are required to list all income on your income tax forms. Most people don't. With gambling you can deduct your losses to offset your winnings, but you need to prove your losses. Keep your losing lotto tickets.

Thanx for the replies all.
Justx, I owe you ticket and a dream..lol..thanx.

This should help answer your questions.
http://www.irs.gov/newsroom/article/0,,id=172190,00.html

Thank you sacredstone.