Are people legally obligated to report money which they have received in the form of a "gift" or gratuity?

If a person who works at a local diner as a waitress, receives help and assistance or benefits thru the state/government . Is she legally obligated to report the tips she earns at the restaurant? What happens if she conceals these earnings? Will she be made to pay money back to which ever agency helped... show more If a person who works at a local diner as a waitress, receives help and assistance or benefits thru the state/government .

Is she legally obligated to report the tips she earns at the restaurant?

What happens if she conceals these earnings? Will she be made to pay money back to which ever agency helped her?

How about in the event of a birthday or Christmas gift : A friend or relative gives me a large substantial amount of money of several hundred or thousand dollars.
Which in no way is relevant to performing work . Though was given as a "gift" out of the kindness of one's heart.

Does this count as income , which an agency will need to know about ? Will it effect the claimants benefits which he or she receives?

What happens if "gifts" or other cash contributions are not reported?

Some agencies I know ask to see a bank statement which shows the amount of funds in a checking or savings account .
But not all of us keep our money in a bank.
Some of us keep our money at home , in a glass jar or under the mattress .
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