The rule in the US is "It is income unless it isn't."
Everything you receive from everyone is taxable income unless you can find a specific tax code saying that it isn't. Lottery winnings are taxable unless a section exempts them. Non-monitary prizes or awards from competitions are taxable.
As with most tax law, this is necessary to prevent widespread avoidance. Nobody would pay any taxes if only money income was taxed. We'd revert to a barter economy wherever possible, defeating the purpose of taxation. (ir employer pays employees with physical good via a company store.) If all competition winnings were exempt, employers might pay people in gambling tokens simply to avoid them having to pay taxes.
Everything you receive from everyone is taxable income unless you can find a specific tax code saying that it isn't. Lottery winnings are taxable unless a section exempts them. Non-monitary prizes or awards from competitions are taxable.
As with most tax law, this is necessary to prevent widespread avoidance. Nobody would pay any taxes if only money income was taxed. We'd revert to a barter economy wherever possible, defeating the purpose of taxation. (ir employer pays employees with physical good via a company store.) If all competition winnings were exempt, employers might pay people in gambling tokens simply to avoid them having to pay taxes.