Students beware: The $5 you won for picking three of the Powerball numbers and $10 you won playing the slots at Tama are subject to taxation, according to the Internal Revenue Service.

“We want to alert people to their responsibility,” said Dave Evans, assistant public officer for the state of Iowa Internal Revenue Service.

Winnings from all types of gambling must be reported on the “other income” line on the front of the 1040 Tax Form.

Evans said the IRS has no way of knowing how many people actually report their gambling winnings.

The reason people don’t report their winnings is a “combination of factors,” he said. “Either they forget about their winnings like small steaks gambling, or they are unaware of their obligation.”

Evans suggested that people keep an accurate record of their gambling winnings and losses in the event that they are audited.

The state annually is shorted funds because people fail to report their winnings.

“There is a revenue lost,” Evans said, but finding unreported winnings can be difficult. But, Evans said if someone suddenly has large expenditures that are not accounted for, the state is normally tipped off.

On the brighter side, unlucky gamblers can report their gambling losses as a miscellaneous deduction. “You can deduct your losses, but you have to file a 1040 form and itemize your losses,” Evans said.

The 1040 “easy” form can be used if students are just claiming their winnings to be taxed, but if they want to also claim their losses, they must us the 1040 form with Schedule A, Evans said. Gamblers are not required to report their losses, but if they do, their loss deduction cannot exceed the winnings claimed.