If you only received a check, it is likely that the payment was compensation for the physical injury you sustained, and not as paid sick leave. Payments of this nature are not taxable and do not get reported on your tax return.
Section 104(a)(2) of the Internal Revenue Code (IRC) mandates that compensation paid “on account of” personal injury or sickness is generally not taxable. This means the federal government does not tax portions of settlements and awards that emanate from physical injuries.
