For Section 8 laws, does reporting income include money one may have received from a accident settlement?

Question

Someone was hurt on the job and is no longer working. They applied and was granted section 8 benefits. since then, they received a settlement check from her old job for the injury. Is she required to report the settlement money to section 8 as although it is not a recurring payment, but a one time payment check?

Answer 1

Yes she needs to report it.  Section 8 was given because she had no money.  Now even though its a one time payment, she has money.  When she runs out she can then file for section 8 again.  Tell her to do this because if she doesn't she will be considered being fraudulent with the govenrnent.

Answer 2

She is required to report ALL income(EVEN money that is recieved as gifts).

If she doesn't report that check that she recieved, and section 8 finds out (which they will-if it came from a job settlement it will be reported to the IRS, Section 8 gets all IRS reports), she will be kicked off of section 8.