I was in a major car accident last year and received a sizable donation. what do I do?

Generally, gifts are not taxable and would not be reported on your tax return. However, if you received a gift or bequest from a foreign person of more than $16,649, you may have to report it. 

Please see page 90 of the 1040 Instructions. 

True gifts are not taxable.  However, any money donated to you by other people is not a tax deductible donation for them, and you can get into trouble if you give them receipts that claim that the gift was tax-deductible.

If you received a tax statement (like a 1099-K or 1099-MISC) there are two possible ways to handle this in Turbotax.

1. Enter the income statement, and indicate this was not earned from working.  Then, go to the "other uncommon income" section and create an item of income with the description "gift adjustment" and the amount being the negative value of the income statement, so the income is offset by the negative amount.  The IRS may send you a letter later asking for an explanation.

Or, 2. Leave the income off your return completely.  Print your return, sign it and mail it to the IRS. (You won't e-file.). Attach a copy of the income statement and a letter explaining that this was a gift and not taxable income. 

In either case, save proof for at least 3 years in case of audit.

One other note: if this was not a true gift, but a legal settlement, it might be partly taxable, depending on how much it was and what it was for.  And, if this was a "gift" from your employer (but not an insurance payment) then it will be taxable because all money you receive from your employer as a result of your services must be considered taxable income.