“ In a podcast, Spidell Publishing, LLC, a private California tax analysis and education company that is well-respected in California, stated that the payments are taxable for Federal income tax purposes.

However, subsequently, Spidell acknowledged in its tax update manual that the general welfare exclusion could possibly apply.

At any rate, the opinions of tax professionals (including mine) do not constitute substantial authority that may be relied upon for purposes of the accuracy- related penalty.“

https://www.bogleheads.org/forum/viewtopic.php?t=395019