Miscellaneous Income

Worker's Compensation for job- related illness or injury is non-taxable.
The Worker's Compensation payments must be made under the authority of a law or regulation that provides compensation for on-the-job illness or injury.
Checks paid under a labor agreement do not qualify as non-taxable Worker's Compensation. If your employer continues to pay your wages while you receive Worker's Compensation and also requires that you turn over the Worker's Compensation payments, then you are taxed on the difference between what was paid to you and what was returned.

Sick pay is considered taxable wages.

The property is considered taxable wages and reportable at its fair market value. Generally receipt of company stock as payment for services is included in taxable wages in the year it is received by employee.
If restrictions apply to the stock, it is not includable.

Severance or dismissal pay received upon termination is taxable, even if a signed waiver releasing the employer from future damage claims was given to the employer.
Payments made for personal injury damages are non-taxable.

There is no gift tax or inheritance tax to the Recipient.
Form 709 is required since it exceeds the current year's annual exclusion of $14,000.
You may not owe any money to the IRS because everyone is entitled to a lifetime exclusion for gifts and their estate.
In the current year, this federal lifetime exemption is up to $5,250,000 .
Cumulative gifts during one's lifetime up to this exclusion although reported, are not taxed federally. State tax laws vary. Please consult with your local CPA.