Sorry if this topic has been discussed already, but I haven't been able to find anything specifically on gift card payouts.

I play on Global Poker, deposited $20 and have only taken payouts in gift card since that deposit.

What are gift card payouts classified as under US and CA tax law and how does a Global Poker player declare taxes properly? Are these considered taxable income at the time of taking the payout, are winnings in Sweeps Coins taxed immediately upon winning them under form W-2G, or is there some other way that these winnings are classified?

I am particularly interested in responses from GP players who have actually declared winnings on their taxes as well as CPAs who have experience with this particular situation. I am willing to pay a reasonable fee for private consultation on this topic.